Reading about Rite Aid filing for bankruptcy. They have 3.3 in debt. By claiming bankruptcy they just wash their hands of it? Who eats all the debt?
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The company is just an inanimate object. The company is owned by the shareholders who are the ones controlling everything. They have invested money into the company and can get money out of the company whenever there is profits. Another group of people who have put money into the company is the debtors. These have either loaned the company money or have provided goods or services to the company and is waiting for payment. This does also include winners of lawsuits as well as the tax office.
When a company goes bankrupt the owners no longer owns the company. Anything they have invested into the company is lost to them. So they lost all their invested money. Control of the company is transferred to the debtors. It is kind of unfortunate for them as they expected payment in cash but now ended up owning a company that loses money. It is now up to the new owners to find out what to do with this company. Often they want to sell parts of it, if not the entire company. In some cases the creditors can continue running the company as before, at least for some time. But most often someone comes along and buy the company, paying off most of the debtors, and then continue to run the company trying to make it profitable.
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