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| Economy | |
| Drug retailer Rite Aid files for bankruptcy, gets $3.45B commitment | |
| 2023-10-17 | |
The Philadelphia-based company was awarded a commitment for $3.45 billion in new financing — which is expected to provide liquidity as it faces more than $8.6 billion in debt — as part of the filing. The bankruptcy process will also allow Rite Aid to resolve over a thousand federal, state and local lawsuits alleging it oversupplied opioids in an "equitable manner," the company said in a release. Rite Aid also appointed a new CEO and chief restructuring officer Sunday as it moves through the bankruptcy proceedings. Jeffrey Stein — who founded Stein Advisors, a financial advisory firm that focuses on fixing troubled companies — will replace Elizabeth Burr, a Rite Aid board member who had been serving as interim CEO since January. "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," Stein said in a statement. "In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on — now and into the future." Rite Aid will close as many as 500 of its underperforming stores — a significant portion of its more than 2,100 drugstores across the nation. | |
| Posted by:Fred |