Rite Aid Corporation announced it is pursuing a strategic sale of substantially all its assets, initiating voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey.
Despite the bankruptcy filing, Rite Aid assured customers that pharmacy services and products, including prescriptions and immunizations, will remain accessible both in stores and online.
The company is working to ensure a smooth transition of customer prescriptions to other pharmacies. Employees involved in 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, Chief Executive Officer of Rite Aid. “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.”
Schroeder emphasized the company’s priorities during this transition: “As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
He expressed gratitude to the company’s employees, stating, “I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company.”
To support the sale process, Rite Aid has secured commitments from existing lenders for $1.94 billion in new financing. This funding, along with cash from operations, is expected to sustain the company during the sale and court-supervised process.
Rite Aid plans to divest or monetize any assets not sold through the court-supervised process and has filed motions with the court to continue operations, including the payment of employee wages and benefits.
