A pharmacy going into administration or liquidation used to be unfathomable. However, with increased competition, franchise networks and significant reductions in the Pharmaceutical Benefits Scheme (PBS), this has become a reality.
More pharmacies are likely to become insolvent and when this occurs, it is important that practitioners (and pharmacists) understand the legal and practical steps that need to be addressed when dealing with the complex regulatory environment and the unique challenges of insolvency in the pharmacy sector.
Recently, Bennett & Philp Directors, Andrew Lambros and Maurice Hannan were involved in the sale of an insolvent group of pharmacies, The Country Wellness Pharmacy Group. As a result, a case study has been prepared and released in the Australian Restructuring and Insolvency Journal (ARITA), which was written by Andrew Lambros and Ian Currie and William Clement of BRI Ferrier (who were the administrators of that group).
It covers a range of topics including pharmacy-specific issues, practical difficulties in trading on, the special court applications required, the sale process of pharmacies in administration and the importance of understanding the industry.
Individual liability limited by a scheme approved under professional standards legislation (personal injury work exempted).