Daily London
Dozens of Priceline-branded pharmacies have been placed into administration by retail giant Wesfarmers after years of financial difficulties.
Receivers KPMG said the 54 affected stores would continue to trade while receivers assessed the business.
More than 400 other Priceline stores around Australia are not affected by the change.
The owner of the 54 affected stores, Infinity Pharmacy Group (IPG), operates more than 120 sites across Australia, many of which are Priceline-branded stores.
A spokesperson for Australian Pharmaceutical Industries (API), which has provided financial support to IPG, said the decision was “unavoidable”.
“API has provided substantial financial support to IPG over a multi-year period with a view to assisting IPG to trade through complex and significant financial challenges and explore options,” API said in a statement.
“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.”
