Debt of Stockland chemists revealed as liquidation winds up
ANYONE who has not yet claimed they are owed money from the $6.9 million liquidation of the former Terry White and Priceline Pharmacy at Stockland in 2017 is urged to come forward.
The liquidator, AS Advisory, has declared creditors whose debts or claims have not already been admitted are required to do so by November 17.
If debts are not formally lodged, the debtor will receive any profits from the remaining liquidated company funds.
The first and final dividend is expected to be declared on December 2.
The two stores, with Terry White formerly located across from Woolworths and Priceline under the shopping centre near Mandalay Medical Centre, unexpectedly went into liquidation in February 2017.
It was reported at the time up to 40 staff were feared to have lost their jobs however both pharmacies opened days later, under the direction of administrators.
The businesses were put on the market and were sold later in the year to Rockhampton Pharmacies.
Priceline was sold for $450,000 and Terry White was sold for $1.3 million.
Creditors meetings for the liquidated companies have been held over the years and are expected to be finalised by the end of this year.
The Terry White Chemist was registered in 2004 and Priceline Pharmacy in 2008.
According to liquidation documents filed in 2018, both companies had a combined debt of $6,992,816 million, with Terry White owing $5,354,959 and Priceline owing $1,637,857.
The main debt was to a secured creditor, Westpac, with Priceline Pharmacy owing $1.47 million and Terry White Chemist owing $5.54 million.
When the businesses sold, employee entitlements were carried over however there was a combined $78,491 outstanding in wages, superannuation and leave entitlements for employees who were made redundant or resigned.
It is further detailed, the businesses were impacted from rising lease costs, decreased trade as the Queensland mining sector continued to slow down, significant interest from secured debt and continued tightening in the margin on pharmaceutical goods from the PBS reforms.
It is understood the company director had extensive negotiations with Stockland on new lease arrangements, but they could not be agreed.
Both of the pharmacies continue to now trade as normal under the new company directors.