Two companies, including one linked to Pharmacy 4 Less Online, have been placed into administration
B K Chemists, which is listed by ASIC and the Australian Business Register (ABR) as the principal business holder of Pharmacy 4 Less Online and Roy Young Chemist, has this week been placed into administration.
According to the ABR, the business also owns the Pharmacy 4 Less Chatswood and Burwood stores in NSW, and the Vitamins 4 Less business.
A second company, B K Chemists No. 2, was also placed into administration on the same day.
B K Chemists No. 2 is listed as the principal business owner of two Priceline Pharmacies based in Chatswood, NSW.
Administrators from Deloitte were appointed on 10 February to both companies under section 436A of the Corporations Act, which outlines that a company may appoint administrator if the board thinks it is or will become insolvent.
Despite the link between B K Chemists and Pharmacy 4 Less Online, Pharmacy 4 Less managing director and CEO Feras Karem maintains the brand will remain unaffected.
He told AJP that while online orders were being filled by B K Chemists, the IP and online rights belong to the Pharmacy 4 Less franchisor.
All four pharmacies owned by B K Chemists were in high rental shopping centres, says Mr Karem.
“We’ve seen this pattern across the industry, not just across our franchisees,” he said.
“Landlords should be able to accept that the landscape has changed, pharmacy rentals need to adjust with the environment that pharmacy operates in today.
“The key issue for B K Chemists was that the rent was unsustainable, they couldn’t pay those rents to Westfield.”
In late 2018, AJP reported that two ACT pharmacies had been placed under administration, with their director also citing rent as a major contributor to their financial troubles.