Dive Brief:
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Rite Aid filed for bankruptcy on Monday, with plans to sell itself, and has already had “meaningful interest” from potential national and regional strategic buyers. Stores will remain open and operating.
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The drugstore retailer has secured commitments from some existing lenders to access $1.94 billion in new financing. That plus cash from operations is expected to be sufficient funding during the sale and court-supervised Chapter 11 process.
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The company just exited a previous bankruptcy in September, after filing less than two years ago, emerging as a private business with about $2 billion less debt plus some $2.5 billion in exit financing.
Dive Insight:
Rite Aid CEO Matt Schroeder, who took the post just eight months ago as the retailer ended its last bankruptcy, said the company “continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate,” and that its priority is to continue to serve customers as it enters another one.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” he said in a statement.
The company is working to transfer customer prescriptions to other pharmacies, and the employees assisting with that will continue to receive pay and benefits, according to a press release Monday.
Editor’s note: This is a developing story and will be updated.