Rite Aid Corporation
Rite Aid is evaluating its store portfolio, and in connection with the court-supervised process, the company will close additional underperforming stores.
Rite Aid also said lenders agreed to provide $3.45 billion in new funding to "provide sufficient liquidity" as it embarks on its restructuring plan.
Rite Aid also appointed Jeffrey Stein as Chief Executive Officer, Chief Restructuring Officer, and a member of the company's Board of Directors, effective immediately.
He succeeds Elizabeth ("Busy") Burr, who has served as Interim CEO since January 2023. Ms. Burr will continue as a Director on the company's board.
The drug retailer is grappling with over a thousand consolidated federal lawsuits in Ohio and numerous similar state lawsuits.
During its most recent Q1, revenue fell to $5.6 billion, down from $6.01 billion in the year-ago period. Net losses widened to $306.7 million, compared to a net loss of $110.2 million a year ago.
Rite Aid warned investors it expects to lose between $650 million and $680 million for FY24.
Price Action: RAD shares closed at $0.65 on Friday.