News: SIG Sigma Healthcare decides to commence legal proceedings against My Chemist/Chemist..., page-123

CW corporate structure and limitations on their pecuniary interests in each state have to be squeaky clean. The majority of their businesses have to be 'owned' by pharmacists other than the Gance & Verrochi corporate entities. I imagine the debts with Sigma are largely spread amongst the responsible individual pharmacy entities. I am not entirely sure but I don't think CW have a warehousing/middleman operations in the same way as the former Chemplus group.

The continued success of the whole CW business always will depend on the business acumen and health of each of their 'franchisees' operations. Any loss of advantageous terms from suppliers will have an impact on the more marginal businesses. Increased competition from other emerging discount groups and rising interest rates will further stress owners who have high levels of debt.

The evolution of CW and how it has got around the corporate ownership rules is of course the key piece of evidence that Coles and Woollies (and other non pharmacist controlled entities) will be for ever examining and will use to lobby government to change the rules.