Rite Aid closing at least 63 stores

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Re: Rite Aid closing at least 63 stores

Post by ClownLoach »

Here's more information about the CEO situation, and what could/should be the end of the bankruptcy.

The CEO is paid $300K per month for two roles: CEO and Chief Restructuring Officer.

He is due a $20M payment if the company is successful in exiting bankruptcy.

Those were the terms under which he was hired. So yes, the creditors (who we must remember are the ones in charge of everything in this bankruptcy including the CEO) are basically trying to renege on his pay.

Knowing that, I still think he is due the payment but I think there should be some stipulations put in place, such as he gets X percent per year as long as the company stays in business and doesn't require bankruptcy. That would be fair to everyone.

Anyway, the hearing that should end the bankruptcy is scheduled June 28th and 29th.

https://www.thestreet.com/retail/big-re ... uptcy-exit
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Re: Rite Aid closing at least 63 stores

Post by storewanderer »

They're using this CEO pay as a scapegoat for the issues with the go forward operation notably lack of inventory and huge cash infusion needed to get inventory.

Let's see what happens between now and the end of the month.

$20 million is nothing in the grand scheme of things. That's less than a dozen closed store prescription file sales. There is no way they'd let this thing fail to save the $20 million. Unless they just want it to fail... but if it fails it won't be because of this CEO and the $20 million bankruptcy exit incentive bonus.
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Re: Rite Aid closing at least 63 stores

Post by Retailuser »

1,169 now. Less and less.
Not good for the chain.
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Re: Rite Aid closing at least 63 stores

Post by ClownLoach »

Retailuser wrote: Yesterday, 11:19 am 1,169 now. Less and less.
Not good for the chain.
I don't think that's an accurate figure as it's 500 less than the last update a few weeks ago.
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Re: Rite Aid closing at least 63 stores

Post by Retailuser »

Sorry for the typo it is 1,619 not 1,169.
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Re: Rite Aid closing at least 63 stores

Post by storewanderer »

It appears Walgreens has bid for certain assets of Rite Aid. It isn't exactly clear what. It seems to include pharmacy assets. It says it excludes all front end inventory and equipment...

It appears according to docket 3793 that $100 million of pharmacy inventory. Quote from docket 3793
"As noted in the Notice of Successful Bidder, the Debtors now seek entry of the
proposed Order for approval of the Walgreens APA and consummation of the sale of the Acquired
Assets. As more fully set forth in the Walgreens APA, I understand that the Debtors will sell the
Acquired Assets (as defined in section 1.1 of the Walgreens APA), consisting of certain
pharmaceutical inventory of the Debtors, to the Purchaser in exchange for up to approximately
$100 million in cash consideration, subject to certain adjustments in accordance with the terms of
the Walgreens APA."

There will be a hearing on this in June 20.
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