The Jhoots Pharmacy chain is teetering on the brink of insolvency after Lloyds Bank launched a high court bid to appoint an administrator to the troubled business.
Bank Action Follows Mounting Debts and Criticism
Lloyds Bank submitted its application to the high court on Monday, seeking to place Jhoots Chemist, which trades as Jhoots Pharmacies, into administration. This drastic step follows intense criticism from MPs last autumn over the company's failure to pay freelance locum pharmacists, with claims it owes them around £670,000 in unpaid fees.
The chain, run by businessman Sarbjit Singh Jhooty from Walsall in the West Midlands, has operated more than 100 outlets. During an urgent parliamentary debate in October, MPs raised serious concerns not only about unpaid staff but also about branches failing to open, the management of controlled drugs, and outstanding payments to landlords and suppliers.
Financial Struggles and Company Split
According to documents filed at Companies House, the Sarbjit Jhooty-owned business subject to the Lloyds application reported creditors exceeding £5 million and a loss of nearly £1.9 million for the financial year to the end of December 2024. The company owed banks £1.7 million in loans and overdrafts, with Lloyds holding 16 unsatisfied charges against it.
The pharmacy operations using the Jhoots name have been split between two brothers. Manjit Jhooty, who owned over 20 branches through separate companies, has distanced himself from his brother's troubles. He rebranded his business as JHL Pharmacy in December and states his branches are "fully functional." The Lloyds application does not apply to his operation.
What Happens Next for the Chain?
The high court will now decide on Lloyds Bank's application. This development comes after a series of unsatisfied county court judgments (CCJs) were issued against the company and after Allied Pharmacies took over the running of 60 Jhoots stores in November.
Despite the severe financial figures, the directors' report from March contained a note stating they had not identified events that cast significant doubt on the company's ability to continue. Pharmacy minister Stephen Kinnock said in October that services provided by Jhoots were "falling well below the mark" of expected standards. Efforts to contact Sarbjit Jhooty for comment were unsuccessful.
