Pending a final order of sale, the bankruptcy proceedings for Family Pharmacy Inc. have concluded, with Smith Management Services LLC, an affiliate of J.M. Smith Corp., providing the winning bid for just shy of $16 million.
During a sale hearing yesterday in a federal bankruptcy courthouse in Kansas City, Smith Corp.’s court-approved bid was nearly $14 million in cash and $2 million in credit to obtain Family Pharmacy’s assets, said Jim MacLaughlin, the chief restructuring officer hired in the Ozark-based independent pharmacy’s Chapter 11 bankruptcy reorganization case.
South Carolina-based Smith Corp. subsidiary Smith Drug Co. is Family Pharmacy’s primary wholesale pharmaceutical distributor and its largest creditor, according to bankruptcy court documents.
MacLaughlin, co-owner of Kansas City-based advisement firm Lloyd & MacLaughlin LLC, said Smith Corp. beat out several other bidders in the process, which included an Aug. 3 auction.
“In the end, we had what we determined to be six qualified bidders that met the requirements of the bid procedures,” MacLaughlin said.
He said the other bidders were The Bank of Missouri, Walgreens, Hy-Vee Inc., Benzer Pharmacy, and a group of operators of southwest Missouri pharmacies comprising Koby Prater, Ryan Summers and Mike Stuart, who submitted a joint bid.
The transaction closing date is scheduled for Aug. 31. MacLaughlin said the backup bidder selected was a separate joint bid offered by Prater, Summers and Stuart, who teamed up with Walgreens, at yesterday’s sale hearing.
He said Chief Bankruptcy Judge Cynthia Norton would enter an order for the sale along with the backup bid in the next few days.
“The company’s team of employees have largely remained intact, and the scale and scope of the operations continues as it did before the bankruptcy,” he said, adding Family Pharmacy currently employs 172 at its 20 retail pharmacies and two long-term care pharmacies.
In the bankruptcy proceedings, Family Pharmacy cited two years of net losses totaling $7.5 million. The company posted net losses of $3.5 million in 2017 and $4 million in 2016, following profits of $686,000 in 2015. In 2017, gross revenue dropped to $60.3 million from $66.8 million in 2016 and $68.3 million in 2015.
Smith Corp. representatives referred questions about the sale to Carrie Tennis, director of operations for Family Pharmacy. Tennis did not immediately return a message.
Family Pharmacy has been owned by Lynn and Janet Morris since 1977, when the company was founded. The couple indicated in May they had retired from the business, according to past Springfield Business Journal reporting.
Bike enthusiast Cody Stringer is betting his bike share nonprofit will lead to a more bike-friendly city.
As employees are more mobile and have a desire to work from home, Haden Long owner of Ellecor, explains office spaces are trending towards a more home-like feel. Things like shared work spaces, office pets, and cozy furnishings allow employees to be selective about where they work and become more effective as a result.
Every industry has to navigate trend shifts, but Scott Shotts of Missouri Spirits describes the changes in beverage industry as anarchy. Tried-and-true spirits rules are being ignored. Learn how the local distillery balances following the trends for product development with taking risks.
Kevin Wyas, founder of ECRI, started his first business at the age of 19, ran the business for 16 years before selling it. He recognizes the benefits of starting a business so young when he had relatively little to lose. "The stress and the uncertainty of this would be crippling," he says for somebody accustomed to a regular paycheck.
ighty percent of questions are common across industries, so you don't need industry-specific experience to do effective market research according to Debra Kassarjian, independent consultant and owner of DKInsights. As a matter of fact, she thinks there is a great deal to be gained from exchanging ideas outside of your industry.
Danny Collins, 37 North founder and guide, says the biggest leap they took in the first year was to purchase a vehicle. That major financial investment, however, allowed them to provide their outdoor guide services at a price point they felt was more appropriate.
Springfield Diner owner Ömer Önder sits down with a restaurant consultant who starts challenging the menu offerings."No bashful food." The blunt conversation is the launching off point to determine how the Mediterranean influence will affect the young restaurant's offerings in the future. Made to Order is an ongoing sbjLive documentary series in collaboration with Springfield Business Journal tracking the rebranding of a local restaurant.
Haden Long, owner of Ellecor, opened a retail home decor business five years ago in a traditional retail space. When the interior design side of the business took off, she decided to renovate a 100-year old bungalow to better show off product samples and installations.
Scott Shotts, partner with Missouri Spirits, says when they started in 2011 there were approximately 300 distilleries in the U.S. and now there are more than 3,000 so competition has grown significantly. Diversification of their business model has helped them succeed.
Matthew Blystone of Theta Float Spa had the financial means to start the unique business, but used crowdsourcing for pre-orders to determine market interest in addition to gathering a nice cash reserve before opening.
Avery Parrish with the Springfield Regional Arts Council explains how businesses can display local art in their spaces for a fraction of the price of investing in a permanent collection. The corporate partnership program allows a business to select from a customized portfolio of local artists' work curated based on the company's mission and aesthetic that can be switched out every six or 12 months.