Post-Failed Merger with Albertsons, Rite Aid Restructures, CEO Resigns
CAMP HILL, PA - Like Ariana and Pete, Albertsons and Rite Aid just weren’t meant to be. After months of courtship, the powers that be (read: investors) just couldn’t fathom a grocery darling and a drug store giant uniting and, ultimately, the two chains agreed to part ways. Now, post-failed-merger, Rite Aid is focusing on itself, announcing organizational restructuring, worth $38 million, and a leadership shakeup that will include John Standley stepping down from the CEO position.
“Rite Aid’s Board of Directors is committed to more closely aligning the structure and leadership of the company with our present scale and today’s announcement is an important step in positioning Rite Aid for future success,” Bruce Bodaken, Chairman of Rite Aid’s Board of Directors, said in a press release. “These are difficult decisions and we recognize the implications they have for individuals across our organization. However, it is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company.”
Moving forward, Rite Aid plans to consolidate and even eliminate senior leadership and managerial roles, which could amount to cutting over 400 jobs—20 percent of the corporate positions located at the chain’s headquarters. The job cuts will be implemented immediately and completed by 2020 and aim to save approximately $55 million.
Additional leadership changes include the following, all effective immediately:
- Bryan Everett will succeed Kermit Crawford as Chief Operating Officer of the company as Crawford exits Rite Aid
- Matt Schroeder, former Chief Accounting Officer and Treasurer, has been promoted to Chief Financial Officer, succeeding Darren Karst who is leaving the company
- Brian Hoover, former Group Vice President, Pharmacy, has been promoted to Chief Accounting Officer
- Jocelyn Konrad, former Executive Vice President, has been promoted to Vice President, Pharmacy and Retail Operations
- Derek Griffith, former Executive Vice President, Store Operations, is leaving the company
"The Board believes that now is the right time to undertake a leadership transition,” Bodaken continued. "We will be focused on recruiting a leader that will best position Rite Aid to create long-term value for shareholders. As we conduct the search process, John has agreed to stay until we appoint his successor. We thank John for his outstanding leadership in guiding the Company over the past several years. His leadership and expertise has been critical to ensuring the company's stability and success through an extremely challenging environment. In addition, we are confident that Bryan, Matt, and our senior leadership team have the capabilities and experience necessary to effectively guide Rite Aid forward. On behalf of the Board, I want to thank Kermit, Darren, and all the other departing associates for their service and contributions to the company.”
For more information regarding the leadership transition and Rite Aid’s restructuring plan, click here.
Will Rite Aid’s restructuring strategy place it back on its path, and even set it up for the possibility of a future grocery partner (a.k.a its Kate Beckinsale)? AndNowUKnow will continue to report on the latest news as it relates to grocery.