Rite Aid shakes up board after 2 failed mergers

Alia Paavola -

After two failed merger attempts, Rite Aid will overhaul its board of directors and separate the CEO and chairman roles, according to CNBC.

The company said Sept. 27 that CEO John Standley will remain chief executive; however, he will no longer also hold the title of chairman. Instead, current director Bruce Bodaken will become chairman. 

In addition, Rite Aid nominated three new directors — Robert Knowling, Louis Miramontes and Arun Nayar — to its board. Shareholders will vote on the changes in October.

Rite Aid accelerated the board shake-up after speaking with shareholders after it abandoned its merger with grocery store chain Albertsons. Investors opposed the planned merger because it would have facilitated Albertsons' private equity owner to take the company public without rewarding Rite Aid shareholders.

The failed Albertsons deal followed another proposed buyout from Walgreens, which also collapsed.

Rite Aid is attempting to fend off larger rivals such as Amazon and CVS.

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