Rite Aid Corporation, a leading drugstore chain operator based in Philadelphia, has officially filed for Chapter 11 bankruptcy. The company has reached an agreement with certain creditors and secured $3.45 billion in new financing from lenders.
According to Rite Aid, the bankruptcy process will provide an efficient platform to accelerate its store optimization plan and resolve legal claims. The company is facing numerous lawsuits at the state, federal and local levels for allegedly filling opioid prescriptions illegally.
In addition to this news, Rite Aid also announced the appointment of Jeffrey S. Stein as CEO, chief restructuring officer and board member. Stein stated that with support from lenders, they are committed to strengthening their financial foundation and implementing their turnaround strategy.
The court-supervised process will allow Rite Aid to efficiently optimize its store footprint while working closely with landlords on determining the best course of action for each location.
A&G Realty Partners is assisting with store closures and lease restructuring efforts as part of this transformation plan. Currently operating over 2
