WESFARMERS Health Chief Customer Officer Richard Pearson yesterday informed Priceline Pharmacy franchisees that receivers and administrators have been appointed for 54 Infinity pharmacies (PD breaking news).
"As many of you are aware, we have worked tirelessly with the Infinity Pharmacy Group (Infinity) over many years to support them to trade through significant financial challenges," Pearson said in an open letter to franchisees.
"Despite these efforts, Infinity's failure to meet their financial obligations over a prolonged period, as well as their worsening debt position, has placed them in an untenable situation, threatening their ability to continue trading."
Receivers and managers KPMG and administrators Teneo will now take responsibility for the day-to-day operation of the pharmacies.
"This approach will also enable Infinity pharmacies to benefit from the strong performance other Priceline pharmacies are experiencing, with the brand's continued focus on value, range and service," Pearson pointed out.
KPMG told Pharmacy Daily that the stores will continue to operate as normal while the receivers undertake an assessment of the business, and at present all employees will be retained and will be paid normally through the receivership process.
"These pharmacies provide essential goods and services to communities across Australia which is why we will be focussed on ensuring they continue to trade with minimal disruption to customers," said KPMG Australia's Turnaround & Restructuring Services Partner and Receiver, David Hardy.
"As well as stabilising the operations of these pharmacies, we will be commencing an orderly sale process in the New Year.
"We will be working with all stakeholders, including pharmacists, employees, suppliers and customers, to maximise the outcome for all parties," Hardy concluded.
Pearson stressed that the pharmacies within the Infinity group are viable, and at the end of this process should be on a more stable and sustainable footing for the future.
"To summarise, this is a difficult situation which has unfortunately become unavoidable," Pearson said.
"We have approached this in the most prudent and responsible manner to enable a sustainable outcome for all stakeholders and especially our franchisees, who have worked to maintain the premium reputation of our brand," he concluded. KB
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