Rite Aid bankruptcy plan approved, cutting $2 billion in debt

A sign is posted in front of a Rite Aid store on June 20, 2024 in San Rafael, California. 

Justin Sullivan  | Getty Images

A U.S. bankruptcy judge on Friday approved Rite Aid‘s restructuring plan, allowing the pharmacy chain to cut $2 billion in debt and turn over control of the company to a group of its lenders.

U.S. Bankruptcy Judge Michael Kaplan approved Rite Aid’s bankruptcy plan at a court hearing in Trenton, New Jersey, saying that the restructuring had saved the company from having to shut down and liquidate operations.