Wesfarmers (ASX:WES) has placed more than 50 Priceline pharmacies operated by its largest franchisee, Infinity Pharmacy Group, into receivership, following years of financial strain.
The retailer confirmed that 54 of Infinity's 120 stores—most of them Priceline-branded and largely based in Queensland—were put into receivership on Dec. 17, with KPMG appointed as receiver.
Wesfarmers declined to disclose the amount owed but said Infinity was no longer able to meet its financial obligations despite receiving substantial financial support over several years.
KPMG partner David Hardy said the affected pharmacies would continue trading, with all employees retained and paid, while an orderly sale process begins in the new year.
Infinity Pharmacy Group itself is not in receivership, only the 54 stores.
The move has sparked tension with fellow creditor Paragon Care, which is owed $46.9 million across 101 Infinity stores and said it was surprised and disappointed by the decision, made without prior notice.
Paragon's shares fell 13.5% on Dec. 18 amid concerns over the recoverability of the debt.