Rite Aid's CFO is promoted to CEO after the drugstore chain emerges from bankruptcy

Rite Aid has emerged from federal bankruptcy protection and will operate as a private company. And the company promoted its CFO Matt Schroeder to CEO.

The drugstore chain announced Tuesday that Schroeder will succeed Jeffrey S. Stein, who resigned as CEO and chief restructuring officer in connection with the company's exit from Chapter 11. Schroeder has been part of Rite Aid since 2000 and held various leadership positions before becoming CFO in 2019.

Through its financial restructuring process, Rite Aid has eliminated about $2 billion in total debt, the company announced Tuesday. In addition, the company has received approximately $2.5 billion in exit financing to support the company going forward.

Ownership of the company passed to “certain Rite Aid creditors” and all of the company's existing common stock was canceled – a common event in bankruptcies that was set forth in the company's restructuring plan. Rite Aid was founded in 1962, made its first initial public offering, and began trading on the American Stock Exchange in 1968. The company then moved to the New York Stock Exchange in 1970.

Rite Aid posted annual losses for several years, due in part to declining sales. The company has also faced controversy related to opioid-related lawsuits. Since 2021, the company has fallen 39 places in the Fortune 500 ranking, landing at number 171 in 2024.

Rite Aid responded to these headwinds by cutting costs and closing stores, but it wasn't enough to stave off bankruptcy. However, going through Chapter 11 will help “significantly reduce the company's debt” while helping to “resolve litigation in an equitable manner,” Rite Aid said in October.

In its federal bankruptcy filing, Rite Aid said it operates more than 2,000 retail pharmacies and plans to close 154 stores. Its careers website now says the company has about 1,700 retail pharmacies. Before filing for Chapter 11 in January 2023, Heyward Donigan, CEO of Rite Aid since 2019, resigned.

“The board determined, and Heyward agreed, that now is the right time to select the next leader of the company,” Rite Aid Chairman Bruce Bodaken said in a statement at the time. Elizabeth Burr, a member of the Board of Directors, has been named interim CEO. Burr served in that role until October, when Stein, another board member, took over as CEO and chief restructuring officer. His experience includes supporting companies with transformations and financial restructuring.

Schroeder is now at the helm of the company. He has a deep understanding of the business and is a “great fit for the company,” Bruce Bodaken, Rite Aid's chief executive officer during the Chapter 11 process, said in a statement.

“Thanks to the commitment of the entire organization, we are beginning our next phase as a transformed company,” Schroeder said in a statement.

Rite Aid informed Assets announced via email Wednesday afternoon that Steve Bixler, its chief accounting officer, has been named acting chief financial officer.

This story was originally published on Fortune.com