Wesfarmers, a major player in the retail sector, has placed dozens of Priceline-branded pharmacies into administration following prolonged financial struggles.
KPMG, appointed as receivers, announced that the 54 pharmacies impacted would remain operational as they evaluate the business’s future.
Significantly, over 400 other Priceline outlets throughout Australia remain unaffected by this development.
The 54 pharmacies in question are owned by Infinity Pharmacy Group (IPG), which manages more than 120 locations across the nation, many under the Priceline brand.
Australian Pharmaceutical Industries (API), which has been financially backing IPG, expressed that the move was “unavoidable.”
In a statement, API noted, “We have provided substantial financial assistance to IPG over several years, aiming to help them navigate complex and significant financial challenges while exploring potential solutions.”
“API’s financial support relates primarily to the wholesale supply of pharmaceutical and other products to IPG pharmacies.
“Regrettably IPG’s financial position has deteriorated further in recent months, and it is unable to meet its financial obligations to various creditors, including API.
“In view of this, API considers the appointment of receivers and managers is now unavoidable.
“It is the most prudent approach to enable affected pharmacies to continue to trade, providing customers in the community with a consistent level of service.”
The move has caused conflict with another creditor, Paragon Care, which supplies medical equipment to Priceline Pharmacy.
“The company had been working with the Infinity Group and other parties, including Wesfarmers Health, on a payment and debt restructure plan,” Paragon Care said in a statement.
“At that time, the company was confident that this plan would be agreed and executed upon in due course.
“The company is therefore surprised and disappointed in the decision to appoint receivers and administrators to certain pharmacies in the Infinity Group, which has occurred without prior notice.
“The company will work with the appointed receivers and administrators and other key stakeholders to support an orderly sale and/or recapitalisation process with respect to the Infinity Group, so as to maximise the return to creditors.”
