Rite Aid has successfully completed its financial restructuring and emerged from Chapter 11 as a private company. The chain now has a smaller store footprint of approximately 1,300 stores, down from 2,100 prior to the retailer’s October 2023 bankruptcy. As part of this new chapter the retailer has named CFO Matt Schroeder as its new CEO, succeeding Jeffrey Stein, who has stepped down as CEO and Chief Restructuring Officer.
The pharmacy chain’s restructuring plan received court approval in July 2024 and allowed Rite Aid to eliminate approximately $2 billion of debt as well as receive approximately $2.5 billion in exit financing to support the business going forward. Rite Aid will now operate as a private company under ownership of certain of its creditors. As part of this reorganization plan, all of Rite Aid’s existing common shares were cancelled.
“Emergence is a pivotal moment in Rite Aid’s history, enabling it to move forward as a significantly transformed, stronger and more efficient company,” said Stein in a statement. “We are grateful for the ongoing support of our customers, associates and partners, and we look forward to continuing to provide leading pharmacy services designed to improve health and wellness outcomes across the communities we serve. I am excited about Rite Aid’s future as it continues to focus on executing its strategy and delivering for its customers and stakeholders.”
Leading that effort will be Matt Schroeder, who joined Rite Aid in 2000 and most recently served as CFO. However, he has served in various leadership positions during his time at Rite Aid, giving him “deep understanding of all aspects of our business,” said Bruce Bodaken, who served as Chair of Rite Aid’s Board of Directors during the Chapter 11 process, in a statement. “He has shown outstanding leadership through this process and is an excellent fit for the company as it advances as a stronger organization. I thank Jeff for his dedication and commitment to guiding the company through the complex restructuring process. I know Rite Aid is well-positioned for the future because of his expertise, vision and hard work over these past 11 months.”
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“I am honored to lead Rite Aid on its journey as we continue serving our customers and communities,” said Schroeder in a statement. “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.”
