A UK wholesaler of pharmaceutical goods is in the process of winding up operations, despite having secured a £40 million government contract to supply personal protective equipment (PPE) during the pandemic.
Medicine Box Ltd enters liquidation
Medicine Box Ltd, based in Sutton-In-Ashfield, Nottinghamshire, is winding up its operations as it cannot pay its debts as they fall due. This has necessitated a legal process akin to liquidation to manage its affairs. The winding-up order was issued on May 13, 2026.
Liquidation is the formal legal process by which a business is shut down. It often involves selling the company's assets to generate cash to pay creditors and shareholders, thereby ending the company's legal existence.
Government contract details
Reports indicate that Medicine Box Ltd received a £20 million advance from the government when it signed a £40 million contract to supply healthcare workers with PPE at a cost of £10 per item. The contract commenced on April 25, 2020, and was scheduled to be fulfilled by June 2020, according to Pharmacy Magazine in February 2021.
Medicine Box Ltd informed Independent Community Pharmacist that it was required to supply four million pieces of protective coveralls, which it claimed to have delivered by May 31. The company stated it received the full £40 million. The deposit from the Department of Health and Social Care (DHSC) was paid upon contract signing, with the remainder paid upon delivery and inspection of the products.
The DHSC did not disclose whether the contract was subject to an open bidding process. According to Tenders Electronic Daily, the European public procurement journal, only one tender was received.
Another pharmacy chain enters administration
In a separate development, a company behind a chain of high street pharmacies and beauty outlets has also entered administration. Amiry & Gilbride Healthcare Limited (AGH) operates 13 stores across Scotland under LP North 14 Limited and LP North 15 Limited. The family-run business, launched in 2023, also runs two prescription collection units offering locker services and free medicine pouching.
An order from the Court of Session appointed administrators to the holding company, although neither of the two subsidiaries is affected. They are expected to be sold, with the pharmacies continuing to trade as normal, as reported by the Express.
