A prominent pharmacy chain in the West Midlands is teetering on the brink of collapse after Lloyds Bank initiated legal action to push it into insolvency.
High Court Action and Mounting Debts
Lloyds Bank lodged an application at the High Court on Monday, December 29, seeking to appoint an administrator for Jhoots Chemist. The chain, operated from Walsall by businessman Sarbjit Singh Jhooty, is accused of failing to pay freelance locum pharmacists fees totalling £670,000. This legal move follows a series of county court judgments (CCJs) issued against the business that remain unsatisfied.
The financial troubles are deep-seated. The most recent accounts filed with Companies House for the period ending December 2024 reveal creditors of over £5 million and a loss of nearly £1.9 million. The company owes £1.7 million to banks in loans and overdrafts, with Lloyds Bank holding 16 unsatisfied charges against it.
Political Scrutiny and Store Takeover
The chain's difficulties have drawn sharp criticism from politicians. In an October parliamentary debate, MPs raised serious concerns about Jhoots' operations. These included branches failing to open, mismanagement of controlled drugs, and non-payment of staff, landlords, and suppliers.
Pharmacy Minister Stephen Kinnock stated during the session: “Unfortunately there are some [pharmacies] that fall short of the standards that we expect and sadly the services provided by Jhoots are falling well below the mark.”
In a significant development last November, Allied Pharmacies took over the operations of 60 Jhoots stores, indicating a major contraction of the business, which once had more than 100 retail spaces.
Company Structure and Director's Assurance
Jhoots-branded chemists are owned either by Sarbjit Singh Jhooty or his brother, Manjit Jhooty. Manjit Jhooty owns more than 20 locations through his separate firms, Pasab and Jhoots Healthcare. He has clarified that his branches are distinct from his brother's, stating they are "fully functional and continue to deliver services to the communities they serve."
Last month, Mr Manjit Jhooty rebranded his business as JHL Pharmacy, confirming that the Lloyds Bank High Court application does not apply to this separate group.
Despite the dire financial figures, a note in the company's accounts, signed off in March, claimed the directors had "not identified any material uncertainties" threatening the company's ability to continue. Efforts by The Guardian to contact Sarbjit Jhooty for comment were unsuccessful.
