SYDNEY, Jan 20, 2026, 19:29 AEDT
- Wesfarmers has abandoned its late-stage efforts to stabilise Infinity Pharmacy Group, a key Priceline franchisee carrying debts exceeding A$400 million.
- Receivers and administrators have kept over 50 stores open as creditors consider their next moves.
- The pharmacy deal space in Australia is on alert, as Chemist Warehouse and other investors emerge as possible bidders in the upcoming sale.
Wesfarmers Ltd has pulled out of a last-minute bid to rescue Infinity Pharmacy Group, the largest franchisee in its Priceline Pharmacy network. The move leaves dozens of stores caught up in insolvency proceedings, with creditors facing debts exceeding A$400 million.
The collapse hits just as major retailers ramp up their health and beauty offerings, with community pharmacies serving as key hubs for everyday care — from prescriptions and basic medicines to vaccinations and advice — especially in suburbs and regional areas. When a big player falters, the ripple effects quickly reach landlords, suppliers, and lenders.
This move puts a rare asset on the table: a nationwide chain of pharmacy locations controlled by a distressed owner. Receivers may keep stores operating temporarily, but they usually act fast to sell off the business or break it into parts.
Receivership occurs when an outside manager is appointed, typically after a secured creditor intervenes, to safeguard and liquidate assets. Voluntary administration, on the other hand, involves an external party stepping in to keep a company operating while it undergoes restructuring or is put up for sale.
Local outlets reported Wesfarmers was gearing up to inject equity into Infinity and restructure its debt, even planning a new management company. But in December, it scrapped that plan and pushed 54 Infinity-run stores into receivership. Richard Pearson, Wesfarmers Health’s chief customer officer, called the move “unavoidable,” blaming a buying spree funded by “high-interest rate debt” that left suppliers unpaid. Creditors are owed over A$400 million—about A$110 million to Wesfarmers-owned wholesaler Australian Pharmaceutical Industries, and roughly A$145 million to major banks like Westpac, NAB, and Commonwealth Bank. Meanwhile, receivers and administrators are keeping stores open and staff on payroll. (Real Commercial)
The West Australian says Wesfarmers points to Infinity’s downfall as a result of a debt-fueled buying binge. (The West Australian)
The Australian Financial Review’s Street Talk column reports that Chemist Warehouse and Sydney-based private equity firm Genesis Capital have begun initial steps toward a possible auction of Infinity’s pharmacy network. (Australian Financial Review)
Chemist Warehouse looks like the natural strategic buyer, thanks to its size and aggressive store expansion plans. Yet, any offer must navigate a complex web of lease conditions, working capital demands, and pharmacy ownership regulations—factors that could limit who’s realistically able to bid.
The risk now is a drawn-out or fragmented sale. Some sites might still shut if landlords toughen terms, suppliers push for upfront cash, or buyers hesitate over squeezed margins—potentially forcing unsecured creditors to take bigger losses.
Wesfarmers snapped up Australian Pharmaceutical Industries in 2022 for A$774 million, gaining control of the Priceline brand and a nationwide pharmaceutical wholesale operation. Infinity’s stumble now casts doubt on the idea that pharmacy retail offers a reliable growth path alongside Wesfarmers’ well-established retail chains.
External managers are currently in charge of the pharmacies as they evaluate the business and negotiate with lenders. Whether the sale involves a single buyer or multiple parties will determine how much of Infinity remains on the high street—and how complicated the financial fallout will be for others involved.
