Rite Aid is filing for bankruptcy, according to a Monday announcement. This is the second time in under a year the drug store chain is seeking protection and announcing it is looking for a buyer.
According to the voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey filing, the company secured commitments from lenders to access nearly $2 billion to carry out operations, including employee wages and welfare benefits. In the meantime, customers will still have access to pharmacy services as the company works to transfer prescriptions to other pharmacies.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. 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. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” Matt Schroeder, chief executive officer of Rite Aid, said.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor, Guggenheim Securities, LLC is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to the Company.
