For the second time in the past 18 months, struggling pharmacy retailer Rite Aid has commenced Chapter 11 proceedings, and this time the retailer appears to be preparing for a sale. Rite Aid has secured commitments from some of its existing lenders for $1.94 billion in new financing which, along with cash from its operations, “is expected to provide sufficient funding during the sale and court-supervised process,” according to a company statement, and Rite Aid intends to “divest or monetize any assets that are not sold through the court-supervised process.”
After its previous bankruptcy in October 2023, Rite Aid emerged as a private company in September 2024. Rite Aid is now working to facilitate a smooth transfer of customer prescriptions to other pharmacies, and employees assisting with this process will continue to receive pay and benefits.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” said Matt Schroeder, CEO of Rite Aid in a statement. “While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
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