The future of the Jhoots Pharmacy chain hangs in the balance after Lloyds Bank filed a High Court application to place the struggling business into insolvency proceedings.
Mounting Debts and Parliamentary Scrutiny
The bank's move, submitted on Monday, follows intense criticism from MPs last autumn. Politicians accused the chain, which has operated more than 100 outlets, of failing to pay freelance locum pharmacists, with claims of unpaid fees totalling £670,000. In an urgent debate in October, pharmacy minister Stephen Kinnock stated the services provided by Jhoots were “falling well below the mark” of expected standards.
Concerns raised in Parliament extended beyond staff payments to include branches not opening, the management of controlled drugs, and outstanding payments to landlords and suppliers. The business is run by Sarbjit Singh Jhooty from its base in Walsall, West Midlands.
Financial Struggles and Family Business Split
According to filings at Companies House, the Jhoots Chemist business owned by Sarbjit Jhooty reported creditors exceeding £5 million and a loss of nearly £1.9 million for the year to the end of December 2024. The company owes £1.7 million in bank loans and overdrafts, with Lloyds holding 16 unsatisfied charges against it.
Despite these figures, directors' notes signed off in March claimed no material uncertainties threatening the company's ability to continue. The administration application also follows a series of unsatisfied county court judgments (CCJs) against the firm.
The Jhoots branding has been used by pharmacies owned by either Sarbjit or his brother, Manjit Jhooty. Manjit, who owns over 20 branches through separate companies, has distanced his operation from his brother's troubles. He rebranded his business as JHL Pharmacy in December and confirmed the Lloyds application does not affect his “fully functional” stores.
Store Takeovers and Radio Silence
In a significant development last November, Allied Pharmacies took over the running of 60 Jhoots stores. Efforts to contact Sarbjit Jhooty for comment on the latest insolvency threat have been unsuccessful.
This High Court action marks a critical juncture for a once-expansive pharmacy chain, now grappling with severe financial distress and allegations of poor practice that drew the ire of both politicians and the banking sector.
