CAMP HILL, Pa. — The Pennsylvania-based pharmacy chain Rite Aid announced Tuesday its emerged from Chapter 11 bankruptcy with $2 billion less debt, a new chief executive and roughly half of the stores it once had.
As part of its emergence from bankruptcy, some of the chain's creditors took ownership of the company, executives said in the announcement.
Now privately owned, common shares were cancelled. The pharmacy, headquartered in Camp Hill, received approximately $2.5 billion in exit financing to help it move forward.
Matt Schroeder, the newly named CEO, said Rite Aid is beginning its "next phase."
"I see Rite Aid's remarkable potential, and I look forward to working with the team as we remain committed to our purpose of helping our customers achieve whole health for life,"
Rite Aid entered Chapter 11 bankruptcy in October to deal with losses and the fallout of opioid-related lawsuits, the Associated Press reported. When it entered, the pharmacy chain managed more than 2,200 locations.
Now, a Rite Aid spokesperson said the company now has approximately 1,300 stores.
Schroeder replaces Jeffrey S. Stein as the chain's chief executive. Stein joined the company to lead it as through the court-supervised Chapter 11 process.
"Emergence is a pivotal moment in Rite Aid's history, enabling it to move forward as a significantly transformed, stronger and more efficient company," Stein said.
Rite Aid currently operates 352 stores in Pennsylvania, according to the company.
