Case filing & court posture: Rite Aid (New Rite Aid, LLC and affiliates) filed a voluntary chapter 11 petition on May 5, 2025, in the U.S. Bankruptcy Court for the District of New Jersey, Case No. 25-14861 (MBK). Dkt. 41 The filing followed a prior 2023 chapter 11 restructuring and came as the Company faced macroeconomic headwinds, adverse reimbursement dynamics, strained vendor relations, and liquidity constraints that rendered it unable to service debt obligations.
Liquidity & DIP financing path: The debtors obtained authorization for approximately $1.94 billion in postpetition financing, comprised of a $1.7 billion ABL revolving facility and a $240 million FILO facility. Dkt. 143 An interim DIP order was entered on May 7, 2025, Dkt. 1396 and the final DIP order was entered on July 10, 2025. The facilities financed a wind-down and asset monetization process under which the debtors pursued sales of substantially all business assets, store leases, prescription files, and other operations to third-party buyers.
Restructuring outcome & plan confirmation: The debtors confirmed the Second Amended Joint Chapter 11 Plan of Reorganization on November 26, 2025. Dkt. 3445 The plan provided for equity in the Reorganized Debtors to be transferred to McKesson Corporation in exchange for McKesson's satisfaction of its section 503(b)(9) claims and contribution of $20 million cash. Wind-Down Debtors are administered through a Liquidating Trust.
Plan effective date & post-confirmation: The plan became effective on January 1, 2026, with McKesson assuming control of the Reorganized Debtors and the Liquidating Trustee continuing to manage wind-down activities and retained causes of action on behalf of Wind-Down Debtors.
Current status: The bankruptcy court entered a Final Decree on January 6, 2026, formally closing the chapter 11 cases. Dkt. 3708
