Rite Aid Declares Bankruptcy

Rite Aid Seeks Shelter in Bankruptcy Proceedings

On Sunday, Rite Aid initiated Chapter 11 bankruptcy proceedings as the prominent U.S. pharmacy chain embarks on a substantial overhaul to alleviate its growing debt, amidst numerous legal challenges and declining sales.

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The Philadelphia-based company secured a commitment for $3.45 billion in new financing, a crucial move to address its substantial $8.6 billion debt burden amid the bankruptcy filing.

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Rite Aid's bankruptcy proceedings will enable the fair resolution of over a thousand federal, state, and local lawsuits concerning alleged oversupply of opioids," stated the company in a release.

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On Sunday, Rite Aid named a new CEO and Chief Restructuring Officer as part of its progression through the bankruptcy process

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Jeffrey Stein, founder of Stein Advisors, will succeed Elizabeth Burr, a Rite Aid board member who has been interim CEO since January.

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"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." Jeffrey Stein

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"In doing so, we will be even better able to deliver the healthcare products the and services our customers and their families rely on - now and RITE into the future." Jeffrey Stein

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Rite Aid is set to shutter up to 500 of its underperforming stores, a substantial fraction of its 2,100+ drugstores nationwide

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The company proposed either selling the sites or allowing creditors to take over, but said it would transfer employees at impacted stores to other locations where possible.

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