Philadelphia-based Rite Aid has completed financial restructuring and successfully emerged from Chapter 11 bankruptcy after the U.S. drugstore chain filed for protection last October. It will now operate as a private company, according to a Sept. 3 news release.
Throughout its Chapter 11, the company has cut around $2 billion in debt and received around $2.5 billion in exit financing. The pharmacy retail chain has also closed more than 520 stores since filing for bankruptcy.
"Emergence is a pivotal moment in Rite Aid's history, enabling it to move forward as a significantly transformed, stronger and more efficient company," Jeffrey Stein, CEO and Chief Restructuring Officer of Rite Aid, said in the release.
Mr. Stein also shared plans to step down as the company exits Chapter 11 protection after just under one year in the role. Matt Schroeder, CFO of Rite Aid, has been appointed CEO, according to another Sept. 3 news release.
"I am honored to lead Rite Aid on its journey as we continue serving our customers and communities," Mr. Schroeder said in the release. "Thanks to the dedication of the entire organization, we are beginning our next phase as a transformed company. I see Rite Aid's remarkable potential, and I look forward to working with the team as we remain committed to our purpose of helping our customers achieve whole health for life."