Rite Aid filed for Chapter 11 bankruptcy, a move that would halt lawsuits the drugstore chain is facing over its alleged role in the U.S. opioid crisis and named a new CEO.
Rite Aid said it has received a commitment for $3.45 billion in new financing from some of its lenders, which will provide enough liquidity to support it through the bankruptcy process.
The Chapter 11 filing will also allow Rite Aid to resolve litigation claims in an “equitable manner”, the company said.
Apart from the opioid lawsuits, the pharmacy chain has been struggling with total debts of $8.60 billion as of June 3, according to a court filing with the U.S. Bankruptcy Court for the District of New Jersey, some of which is due to be repaid in 2025. Rite Aid also listed total assets of $7.65 billion.
Rite Aid appointed Jeffrey Stein as its new CEO and chief restructuring officer, replacing interim CEO Elizabeth Burr. Stein has been appointed to the company’s board and Burr will also remain on the board, it said.