Rite Aid Process To Break Leases, Close Stores In Ch. 11 OK'd

By Clara Geoghegan · March 5, 2024, 5:13 PM EST

A New Jersey bankruptcy judge on Tuesday signed off on procedures for bankrupt retail pharmacy chain Rite Aid Corp. to potentially shutter 210 rented stores with fast-approaching lease rejection deadlines, overruling...

To view the full article, register now.
Try a seven day FREE Trial

Already a subscriber? Click here to login

Bankruptcy Scorecard

Summary

Bankrupt drugstore chain Rite Aid filed for Chapter 11 Oct. 15 with plans to close more retail locations, sell its pharmacy benefits manager business and shed some of its $4 billion of total funded debt. A New Jersey bankruptcy judge in June agreed to approve its Chapter 11 plan to pay $2.6 billion in term and asset-based loans in cash, exchange $1.2 billion in senior notes for equity and set up a recovery fund for some 1,600 opioid claims that includes $43 million in cash and 10% equity in the reorganized company.

Case Number

3:23-bk-18993

Judge

Michael B. Kaplan

Venue

U.S. Bankruptcy Court for the District of New Jersey

Capital Structure

Total Liabilities:

$4 billion

View Full Scorecard

Related Sections

Case Information

Case Title

Rite Aid Corporation

Case Number

3:23-bk-18993

Court

New Jersey

Nature of Suit

Date Filed

October 15, 2023

Recent Articles By Clara