Rite Aid emerges from Chapter 11 bankruptcy and names new CEO

Rite Aid has named Matt Schroeder as the company’s new chief executive officer. His appointment comes the same say the drug store chain has emerged from Chapter 11 bankruptcy protection. 

Schroeder has been with Rite Aid since 2000 and most recently served as the company’s chief financial officer. He succeeds Jeffrey S. Stein, who has stepped down as CEO and chief restructuring officer in connection with the company’s emergence from Chapter 11.

“Matt has served in various leadership positions during his tenure at Rite Aid and has a deep understanding of all aspects of our business,” said Bruce Bodaken, chair of Rite Aid’s Board of Directors during its Chapter 11 process. “He has shown outstanding leadership through this process and is an excellent fit for the company as it advances as a stronger organization.”

“I am honored to lead Rite Aid on its journey as we continue serving our customers and communities,” said Schroeder. “Thanks to the dedication of the entire organization, we are beginning our next phase as a transformed company. I see Rite Aid’s remarkable potential, and I look forward to working with the team as we remain committed to our purpose of helping our customers achieve whole health for life.”

[Read more: Rite Aid shuttering all Michigan locations]

Schroeder joined Rite Aid in 2000 as vice president of Financial Accounting. He has held roles of increasing responsibility at the company since, most recently serving as executive vice president and chief financial officer since March 2019. In that role, he was responsible for managing Rite Aid’s financial verticals, including financial planning & analysis, financial reporting, treasury, and accounting, and led store development and procurement functions.

Before joining Rite Aid, Schroeder worked at Arthur Andersen LLP, where he was an Audit Manager. He holds a bachelor’s degree in accounting from Indiana University of Pennsylvania and serves on the board of Whitaker Center for Science and Arts, a not-for-profit serving the greater Harrisburg Pennsylvania region.

Stein called the retailer’s emergence from Chapter 11 a “pivotal moment” in the company’s history, which he said will allow Rite Aid to move forward as a significantly transformed, stronger, and more efficient company.

Through this process, Rite Aid has eliminated approximately $2 billion of total debt. Additionally, the company has received approximately $2.5 billion in exit financing to support the business going forward.

In connection with its emergence from bankruptcy, Rite Aid will operate as a private company. Ownership will be transitioned to certain Rite Aid creditors, and all of Rite Aid’s existing common shares have been canceled, pursuant to the Plan of Reorganization.

This story originally appeared on Store Brands.