SPRINGFIELD, Mo — Family Pharmacy, the largest group of independently owned and operated pharmacies in southwest Missouri, has filed for Chapter 11 bankruptcy.
The chain is owned by Missouri State Representative Lynn Morris.
According to court documents, Family Pharmacy has taken massive hits within the last 2 years, suffering a total of $7.54 million. The company lost $3.5 million in 2016 and $4.04 million in 2017.
“To insure uninterrupted service to its customers, Family Pharmacy decided to seek
protection to better address its outstanding debt obligations, recent company
developments and continuing financial challenges in the retail pharmaceutical industry,” the comany issued in a press release.
In total, it’s estimated that Family Pharmacy owes its 3 main creditors over $30 million. These include the Bank of Missouri ($11 million), Cardinal Health ($1 million), and J M Smith Corporation ($18 million).
To download and read the court documents, click here.
The company provided the following statement to KOLR10 News:
The pharmacy industry has become increasingly challenging over the past few years. Family Pharmacy is working to position itself to continue to be a leader in independent and long-term care pharmacy by strengthening the company. We are committed to ensuring the company is viable for our employees and customers, thus, the company has entered into bankruptcy in order to reorganize and remain a strong group of pharmacies serving South Missouri.
We will continue to operate our group of pharmacies and service our customers with the same care as we have for over 40 years.
The documents also detail that the company owes its employees around 182 people from pharmacists to delivery drivers. Because this filing comes mid-pay period, Family Pharmacy is prohibited from paying those employees. Family Pharmacy is asking the court for that permission.
Family Pharmacy has negotiated a ‘Senior Secured Debtor-in-Possession Loan’ with J M Smith, and intend to sell all of their assets during a 90-day period.
“Family Pharmacy plans to continue to operate in the ordinary course of business while it pursues a sale of substantially all its assets to a proposed purchaser, Smith Drug Company, a division of J M Smith Corporation,” the company said.