Rite Aid Files for Bankruptcy, Launches Restructuring Plan

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As part of a financial restructuring agreement with its senior secured noteholders, Rite Aid announced that it has filed for Chapter 11 bankruptcy. Reportedly, the plan will enable the company to speed up its ongoing business transformation by reducing debt, increasing financial flexibility, and enabling the execution of key initiatives.

Rite Aid credits the court-supervised process with providing the ability to:

• Finalize and build consensus for the agreement in principle the Company has reached with certain of its senior secured noteholders;
• Accelerate the Company’s store footprint optimization plan;
• Implement a proposed transaction under which MedImpact would acquire Elixir Solutions, subject to the outcome of a court-approved marketing process;
• Access additional liquidity; and
• Resolve litigation claims in an equitable manner.

“Rite Aid has served customers and communities across our country for more than 60 years, and the important actions we are taking today will enable us to move ahead as a stronger company,” said Jeffrey S. Stein, Rite Aid’s new CEO, in a company press release. “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy. In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on – now and into the future.”

Reference: Rite Aid Takes Steps to Accelerate Transformation and Position Company for Long-Term Success. Rite Aid. October 15, 2023. Accessed October 16, 2023. https://news.riteaid.com/press-releases/press-release-details/2023/Rite-Aid-Takes-Steps-to-Accelerate-Transformation-and-Position-Company-for-Long-Term-Success/default.aspx