Rite Aid has announced a leadership transition as it emerges from Chapter 11 bankruptcy.
Jeffrey S. Stein has stepped down as CEO and chief restructuring officer, while the company’s executive vice president and chief financial officer, Matt Schroeder, has been appointed CEO, the company said in a Tuesday (Sept. 3) press release.
Rite Aid announced its completion of its restructuring process and its emergence from Chapter 11 in another Tuesday press release, saying the company eliminated about $2 billion of total debt, received about $2.5 billion in exit financing and will now operate as a private company, with ownership of the company transitioned to certain creditors.
“I thank Jeff for his dedication and commitment to guiding the company through the complex restructuring process,” Bruce Bodaken, chair of Rite Aid’s board of directors during its Chapter 11 process, said in the first release. “I know Rite Aid is well-positioned for the future because of his expertise, vision and hard work over these past 11 months.”
Stein said in the release: “I am proud of what we accomplished in strengthening the company’s foundation and believe Rite Aid is well-positioned for future success.”
He added that he will support Schroeder during the CEO transition.
Schroeder joined Rite Aid in 2000 as vice president of financial accounting, held roles of increasing responsibility at the company, and became EVP and CFO in March 2019, according to the release.
“He has shown outstanding leadership through this process and is an excellent fit for the company as it advances as a stronger organization,” Bodaken said in the release.
Schroeder said in the release that Rite Aid is “beginning our next phase as a transformed company.”
“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,” Schroeder said in the release.
Rite Aid initiated its Chapter 11 bankruptcy process in October 2023, saying it had reached an agreement in principle with some of its senior secured noteholders on the terms of a financial restructuring plan.
Months earlier, in January 2023, PYMNTS reported that Rite Aid and its competitors faced a slowdown from the COVID-fueled activities that had carried the industry for the previous two years.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
The post Rite Aid Emerges From Bankruptcy, Names CFO Matt Schroeder as CEO appeared first on PYMNTS.com.
