Rite Aid has emerged out of bankruptcy, having axed about $2 billion from its debt. The company also added some $2.5 billion in exit financing, according to a press release Tuesday.
The drugstore retailer will operate as a private company under a new chief executive. Matt Schroeder, who had been the company’s chief financial officer, will take the post. He succeeds Jeffrey Stein, who was tapped to serve a dual role, as both CEO and chief restructuring officer, during the Chapter 11 process.
Schroeder joined Rite Aid over 20 years ago, in 2000, as its vice president of financial accounting. The executive has held financial roles with increasing responsibility at the company since then, most recently as CFO. He will be the company’s fourth CEO since early 2023, when Heyward Donigan stepped down from the position. Donigan’s replacement, interim CEO Elizabeth Burr, left the role when the company entered Chapter 11.
“Matt has served in various leadership positions during his tenure at Rite Aid and has a deep understanding of all aspects of our business,” Bruce Bodaken, Rite Aid’s board chair during Chapter 11, said in a statement. “He has shown outstanding leadership through this process and is an excellent fit for the Company as it advances as a stronger organization.”
After years of struggles, Rite Aid filed for bankruptcy last October and in the ensuing months worked to close hundreds of stores. These moves became necessary after attempts to merge with other retailers fell through. A deal for Walgreens to acquire its rival didn’t pass muster with antitrust regulators and another with Albertsons failed to win over the grocer’s shareholders.
Rite Aid on Tuesday said it will be “a stronger company with a rightsized store footprint, more efficient operating model, significantly less debt and additional financial resources.”