Rite Aid is once again pursuing Chapter 11 bankruptcy protection, marking the second filing in less than two years, as it seeks to sell “substantially all” of its assets.
Here are five things to know:
1. The company is currently in active discussions with multiple potential buyers. To support operations during the sale process, Rite Aid has secured commitments from certain existing lenders to access $1.94 billion in new financing.
2. In a May 5 news release, Rite Aid CEO Matt Schroeder acknowledged that the company continues to face significant financial difficulties, which have been “intensified by the rapidly evolving retail and healthcare landscapes in which we operate.”
3. Despite the bankruptcy proceedings, Rite Aid stores and online platforms remain operational. Customers will still be able to access pharmacy services and products. Additionally, the company is working to transfer customer prescriptions to other pharmacies as part of the transition. Employees assisting with this process will continue to receive pay and benefits.
4. Rite Aid had previously filed for Chapter 11 in October 2023. After completing financial restructuring, the company emerged from bankruptcy in September, having eliminated significant debt and reorganized its operations.
5. During the course of its first Chapter 11 proceedings, Rite Aid cut approximately $2 billion in debt, secured $2.5 billion in exit financing, and closed more than 520 stores.
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