Rite Aid has emerged from bankruptcy as a private company with a new CEO, writes John George for the Philadelphia Business Journal.

Matt Schroeder has been elevated from the CFO position to become the Philadelphia-based retail pharmacy chain’s new lead executive. He succeeds Jeffrey S. Stein, who joined the company in October 2023 as its CEO and chief restructuring officer.

Schroeder has been with Rite Aid since 2000, filling various finance roles during his tenure.

Rite Aid filed for Chapter 11 bankruptcy protection in October 2023 with more than $4 billion in debt, while also dealing with ongoing opioid litigation.

Since filing, the company has eliminated $2 billion in debt and received about $2.5 billion in exit financing to support its business going forward.

Rite now operates nearly 1,700 stores in 16 states after closing more than 500 stores during its bankruptcy proceedings. About 100 were in the Philadelphia region.

Under its new reorganization plan, control of Rite Aid has been turned over to the company’s key creditors, which include investment firms Brigade Capital and HG Vora. It has also allocated $47.6 million to junior creditors.

Stein called the company’s bankruptcy emergence “a pivotal moment in Rite Aid’s history, enabling it to move forward as a significantly transformed, stronger and more efficient company.”

Read more about Rite Aid and its future post-bankruptcy in the Philadelphia Business Journal.

_____