Wesfarmers, Australia’s largest listed companies, has placed over 50 Priceline pharmacies into receivership following the financial position of Infinity Pharmacy Group (IPG) worsened in recent months.
A total of 54 Priceline stores operated by IPG are affected. Other IPG outlets trading under the Infinity Pharmacy and Chemist Discount Centre brands.
IPG started a family business in 2007.
Wesfarmers, which bought Australian Pharmaceuticals Industries (API) in 2022 and controls the Priceline brand and its wholesale arm, stated it had offered financial support to IPG over multiple years.
Wesfarmers said, “API has provided substantial financial support to IPG over a multi-year period… primarily relating to the wholesale supply of pharmaceutical and other products.”
“Regrettably IPG’s financial position has deteriorated further, and it is unable to meet its financial obligations,” Wesfarmer added.
Wesfarmers further stated that appointing receivers was “unavoidable” and the most prudent option to let pharmacies to persist trading while an orderly sale process starts in the New Year.
In a statement to the ASX, Paragon stated it was “surprised and disappointed” by the receivership decision that it said occurred without any previous information.
Medical equipment supplier Paragon Care is a major creditor, with $46.9 million across 101 IPG stores, as per the latest annual report.
Notably, Paragon Care shares dropped 13.5% to 22¢ in afternoon trading.
