In Business news

Follow this topic

Bookmark

Record learning outcomes

Allied Pharmacies said on Friday it has taken over the running of 60 Jhoots pharmacies as reports emerged that 22 businesses with links to the troubled pharmacy chain confirmed they had entered administration.

Allied Pharmacies said the majority of the 60 Jhoots branches were temporarily closed and insisted it was “fully committed to reinstating essential pharmacy services” while also promising to “address outstanding salary arrears” of staff employed by Jhoots.

“We would like to express our appreciation for the dedicated former Jhoots employees who have been impacted during this difficult period,” Allied Pharmacies said in a statement.

“Their commitment has not gone unnoticed. Allied Pharmacies will be taking steps to address outstanding salary arrears of employed staff as part of our efforts to support the workforce and rebuild trust.”

The Pharmacists’ Defence Association has said some of its members are looking to recover over £925,000 in outstanding locum fees collectively from Jhoots and told Independent Community Pharmacist (ICP) the matter could be settled in court.

Allied Pharmacies encouraged locums who worked in any of the 60 Jhoots pharmacies and are owed salary “to contact the Jhoots administrators”.

On Friday, 22 businesses with links to Jhoots confirmed they appointed administrators, according to The Business Desk, who reported the businesses, controlled by Nilam Patel, include SNJ Health and 21 businesses trading under company names beginning ‘LP SD’. 

It is understood RxBridge, which provides funding to healthcare businesses, requested the appointment of administrators. ICP has contacted RxBridge for more details.

Allied Pharmacies said its takeover of the Jhoots pharmacies highlighted “broader challenges facing the community pharmacy sector”, particularly Government funding.

“While a variety of factors may have contributed to the difficulties at Jhoots Pharmacies, systemic underfunding for almost a decade has placed immense strain on many operators,” Allied Pharmacies said.

“Without meaningful intervention at a national level, the collapse of other significant providers, as seen previously with Lloyds and now Jhoots, could continue to affect patient care and the viability of community pharmacies nationwide.”

Allied Pharmacies had 44 pharmacies in the UK before the takeover and its website says it was set up 20 years ago “as a pharmacy chain based on partnerships with local pharmacists”.