(RestoreAmericanGlory.com) – On Sunday, Rite Aid Corp. filed for Chapter 11 bankruptcy while also taking steps to restructure under new leadership. The company is currently facing lawsuits as it is being accused of having contributed to the opioid crisis.
In a news release, the drug retailer stated that the bankruptcy process had been initiated on a voluntary basis in an attempt to cut down the company’s debt and that it was being supervised by the court. They added that the Chapter 11 bankruptcy would allow the company to become more financially flexible and proceed with important initiatives that will ultimately resolve the legal troubles it is facing.
Apart from filing for bankruptcy, Rite Aid has stated that they have secured a $3.45 billion financing commitment from lenders, which is going to allow the company to have the necessary liquidity while undergoing the bankruptcy process.
The release added that the company was going to continue providing healthcare services and products across its different platforms, which serve close to one million customers each day. The company is also committed to helping people achieve greater health during their lifetime.
Reuters has reported that according to Rite Aid’s court filing in New Jersey’s U.S. Bankruptcy Court, the company was estimated to have assets and liabilities that ranged from $1 billion to $10 billion.
In the release, it was also announced that Elizabeth Burr would be replaced as the company’s CEO by Jeffrey Stein. Burr would continue to be a part of the company’s board following her time serving as the interim CEO since January.
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