Philadelphia, NJ – In a bold move to confront its financial turmoil, Rite Aid Corp., the fourth-largest network of brick-and-mortar pharmacies in the United States, filed for Chapter 11 protection late on Sunday. This strategic decision comes amidst plummeting sales, store closures, and a deluge of lawsuits linked to its alleged role in the U.S. opioid epidemic.
Rite Aid’s Multi-Billion Dollar Restructuring Plan
The retail drugstore giant revealed that it had secured an impressive $3.45 billion commitment from lenders. Simultaneously, the company announced the appointment of Jeffrey S. Stein as the new Chief Executive Officer, Chief Restructuring Officer, and board member, replacing interim CEO Elizabeth Burr, who will remain a member of the company’s board. Stein expressed his gratitude to the retailer’s loyal customers, dedicated employees, steadfast vendors, and supportive lenders.
“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,” Stein said in a statement Sunday.
