Rite Aid announced January 9 that its board of directors has appointed Elizabeth “Busy” Burr, a member of the company’s board, as interim CEO, effective immediately. Burr’s appointment follows Heyward Donigan’s departure as president and CEO and as a member of the board. Rite Aid said it has initiated a search to identify a permanent chief executive and has retained a leading executive search firm. Donigan was named the Philadelphia-based drug chain’s chief executive officer in 2019 replacing former supermarket executive John Standley.
Burr has extensive experience in the health industry, and according to Rite Aid, has proven expertise in innovation, business strategy, retail and brand management. She previously served as vice president, head of health ventures and chief innovation officer at Humana, a $70 billion for-profit U.S. health insurance company. Most recently, at Carrot Inc., Burr served as president and chief commercial officer, leading the team focused on bringing the company’s digital health solutions to market. Burr previously served as managing director of Citi Ventures and global head of business incubation of Citigroup Inc. as well as entrepreneur-in-residence at eBay Inc. She has also held various senior leadership roles at Credit Suisse Group AG (formerly Credit Suisse First Boston) and Gap Inc., where she served as vice president of global brand management.
Bruce Bodaken, Rite Aid chairman, stated, “As the company continues its efforts to enhance its competitive position in this dynamic environment, the board determined and Heyward agreed that now is the right time to identify the next leader of the business. With a deep understanding of the industry and our strategy, the board was unanimous in its belief that ‘Busy’ is highly qualified to serve as interim CEO while the board conducts a search for a permanent successor. We are fortunate to have someone of her caliber to step into the role and are confident in ‘Busy’s’ ability to lead the company forward during this transition period.”
Burr said, “Having served as a director since 2019, I have great respect for the important role Rite Aid plays as a full-service pharmacy improving health outcomes for millions of Americans. I will work with the board and management team to realize our vast potential while supporting our thousands of pharmacists and team members who are focused every day on meeting the needs of our communities and customers. With Rite Aid’s well-established brand and its committed and talented team, I look forward to delivering on our business strategy and driving value for all our stakeholders.”
Bodaken continued, “On behalf of the entire board, I want to thank Heyward for her contributions and service to Rite Aid, particularly her efforts in helping to lead Rite Aid throughout the COVID-19 pandemic. We wish her all the best in her future endeavors.”
Donigan said, “It has been a privilege to lead Rite Aid and its exceptional team. I am proud of all that we have achieved together, and I believe that the company is well positioned for the future.”
It’s little wonder why Donigan and Rite Aid parted ways, as the company’s shares have been trading near record lows. In December, the Pennsylvania-based drug chain expanded its annual loss outlook for the third consecutive quarter while reaffirming its fiscal 2023 guidance which forecasts total revenues between $23.7 billion and $24.0 billion, and a net loss between $551 million and $584 million. The retailer also predicted that its adjusted EBITDA would range between $410 million and $440 million and it would allocate capital expenditures of approximately $225 million. Rite Aid’s stock closed at $3.47 per share on January 11. That compares with its share price of $12.38 a year ago.
