Wesfarmers subsidiary appoints receivers to 54 Priceline Pharmacies operated by Infinity Group

Australian Pharmaceutical Industries Pty Ltd, a subsidiary of Wesfarmers, has appointed receivers and managers over a portfolio of community pharmacies operated by Infinity Pharmacy Group, placing 54 Priceline-branded stores into receivership alongside a parallel voluntary administration process.

The appointments were made on December 18 after Australian Pharmaceutical Industries, trading as API, exercised its rights as secured creditor following what it described as a sustained deterioration in Infinity’s financial position and its inability to meet obligations to multiple creditors. API is the principal wholesale supplier to the affected pharmacies and has provided extended financial support to the group over several years.

KPMG partners George Georges, David Hardy, Gayle Dickerson and Will Colwell were appointed as receivers and managers to the 54 pharmacies, assuming control of day to day operations. At the same time, Teneo partners Daniel Bryant, Stephen Longley, Martin Ford and Mahala Hazell were appointed voluntary administrators to Infinity Pharmacy Group entities.

The receivers have confirmed that all affected pharmacies will continue trading while an assessment of the business is undertaken, with employees retained and paid in the ordinary course. The stores are spread across Victoria, New South Wales, Queensland and Western Australia and operate predominantly under the Priceline franchise, alongside a small number trading under other banners.

Infinity Pharmacy Group was founded in 2007 and grew into the largest Priceline franchisee nationally, operating approximately 120 sites in total. Only the 54 pharmacies supplied and financed by API are subject to the receivership, with the balance of the group’s network continuing to trade outside the appointment.

API said its financial exposure arose primarily through wholesale supply arrangements for pharmaceutical and allied products and that continued support was no longer viable given recent trading performance. The receivers are expected to commence an orderly sale process in the new year, with a focus on minimising disruption to patients and preserving value across the pharmacy network.

The appointment has drawn attention from other creditors. Paragon Care disclosed that it is owed $46.9 million across 101 Infinity Pharmacy Group stores and said it was surprised by the decision to appoint receivers to part of the network without prior notice. Paragon has indicated it is separately engaged in discussions with Infinity regarding repayment and restructuring options for the non-receivership stores.

The collapse of part of the Infinity network comes amid broader financial strain in the community pharmacy sector, with operators facing higher operating costs and reduced dispensing revenue following the introduction of 60-day prescriptions under the Pharmaceutical Benefits Scheme. Industry groups have warned that the changed remuneration model has materially affected cash flow for high volume dispensaries, particularly those carrying elevated rent, labour and compliance costs.