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Rite Aid Files For Bankruptcy, Receives $3.45 Billion From Lenders
- By The Financial District
- Oct 17, 2023
- 1 min read
Rite Aid has filed for Chapter 11 bankruptcy, which will halt the lawsuits the drugstore chain is facing over its alleged role in the US opioid crisis. The company also named a new CEO, as reported by Reuters.
The Chapter 11 filing will also allow Rite Aid to resolve litigation claims in an "equitable manner," according to the company. I Photo: Mike Mozart Flickr
Rite Aid announced that it has secured a commitment for $3.45 billion in new financing from some of its lenders, which will provide sufficient liquidity to support the company through the bankruptcy process.
The Chapter 11 filing will also allow Rite Aid to resolve litigation claims in an "equitable manner," according to the company.
In addition to the opioid-related lawsuits, the pharmacy chain has been grappling with total debts of $8.6 billion as of June 3, as stated in a court filing with the US Bankruptcy Court for the District of New Jersey, some of which are due to be repaid in 2025.
Rite Aid also listed total assets of $7.65 billion.
The company appointed Jeffrey Stein as its new CEO and chief restructuring officer, replacing interim CEO Elizabeth Burr. Stein has been appointed to the company's board, and Burr will also remain on the board.
