A rescue deal for Infinity Pharmacy Group, Priceline Pharmacy's largest franchisee, has not proceeded, leaving the future of dozens of pharmacies uncertain.
Background
Retail group Wesfarmers placed 54 Infinity Pharmacy Group stores into receivership in December 2023. This action followed revelations that creditors were owed over $400 million.
Deal Collapse
Wesfarmers Health had considered injecting equity into Infinity Pharmacy Group. However, these recapitalization plans will not go forward, as confirmed by Wesfarmers Health chief customer officer Richard Pearson. Mr. Pearson stated the decision was 'unavoidable,' citing Infinity's prolonged failure to meet financial obligations and worsening debts. He further explained that Infinity's 'over-leveraged approach to network growth' risked undermining the trusted position of community pharmacies in Australia.
Financial Details
Creditors include Australian Pharmaceutical Industries, which is owed $110 million. Three major banks are collectively owed $145 million.
Current Status
Receivership firm KPMG is collaborating with voluntary administrators Teneo to manage the sale of Infinity's 91-store pharmacy network. The sale process has reportedly generated interest from other pharmacy groups. Infinity Pharmacy employs 1,200 staff across its nearly 100 stores, primarily located in Queensland and New South Wales.