Rite Aid Corporation, a drugstore chain operator based in Philadelphia, has recently filed for Chapter 11 bankruptcy. The company has reached an agreement with certain creditors and secured $3.45 billion in new financing from lenders.
According to Rite Aid, the bankruptcy process will provide a streamlined platform to accelerate its store optimization plan and resolve legal claims related to opioid prescriptions. The company is facing over 1,000 lawsuits at state, federal and local levels for allegedly filling illegal opioid prescriptions.
In addition to this development, Rite Aid announced the appointment of Jeffrey S. Stein as CEO and board member along with his role as chief restructuring officer. Stein expressed confidence in strengthening their financial foundation with support from lenders while advancing transformation initiatives and executing turnaround strategies.
He further stated that the court-supervised process would facilitate efficient footprint optimization by working closely with landlords towards determining the best course of action for each store location.
A&G Realty Partners is assisting Rite Aid’s efforts through its store closing program and lease restructuring program across their current presence of more than 2,100 stores spanning 17 states.
Kirkland & Ellis LLP serves as legal advisor while Guggenheim Securities acts as investment banker; Alvarez & Marsal provides transformation officer services along with financial advisory assistance.
