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Jhoots buys a further 28 ‘unviable’ branches from Lloydspharmacy

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One of the former Lloydspharmacies on Aylestone Road in Leicester (credit: Local Data Company)
One of the former Lloydspharmacies on Aylestone Road in Leicester (credit: Local Data Company)

The Jhoots Pharmacy chain has bought a further 28 branches across England from Lloydspharmacy, C+D can exclusively reveal.

C+D reported in January that the independent group had bought three Lloydspharmacies in Dudley – part of the 190 “commercially unviable” branches where the multiple announced in October 2017 it would cease trading.

Walsall-based Jhoots Pharmacy has listed all 28 of the latest batch of former Lloydspharmacies on its website, with the acquisition bringing its total number of branches up to 98.

Lloydspharmacy has since confirmed to C+D that these 28 stores are among its 190 “unviable” branches.

Where are the 28 branches located?
  • 116 High Street North, Dunstable, Bedfordshire, LU6 1LN
  • 18 Parlaunt Road, Langley, Berkshire, SL3 8BB
  • 24 West End Road, Reading, Berkshire, RG7 3TF
  • 62 Acklam Road, Middlesbrough, TS4 4EQ
  • 53-55 Bridge Street, Belper, Derby, DE56 1AY
  • 200-202 Saint Thomas Road, Derby, DE23 8SX
  • 37 Sidwell Street, Exeter, Devon, EX4 6NS
  • 201 Oakridge Road, Basingstoke, Hampshire, RG21 5TA
  • 240 High Road, Wood Green, London, N22 8HH
  • Richford Gate Primary Care Centre, 49 Richford Street, Hammersmith, London, W6 7HY
  • 107 Hartley Road, Nottingham, NG7 3AQ
  • 116 Walton Street, Oxford, OX2 6AJ
  • Westbury Medical Centre, Westbury Hill, Bristol, BS9 3UJ
  • Blackbrook Medical Centre, Lisieux Way, Taunton, Somerset, TA1 2LB
  • Stockmoor Park, Taunton Road, Bridgwater, Somerset, TA6 6LD
  • Victoria Park Medical Centre, Victoria Park Drive, Bridgwater, Somerset, TA6 7AS
  • 26 Oswald Road, Scunthorpe, North Lincolnshire, DN15 7PT
  • 171 Victoria Road, Swindon, Wiltshire, SN1 3DF
  • 88 Frome Road, Bath, Somerset, BA2 2PP
  • 44 Malabar Road, Leicester, LE1 2DP
  • 184 School Road, Birmingham, B28 8PA
  • Unit 2, 480 Bristol Road, Birmingham, B29 6BD
  • 100 Mosely Avenue, Coventry, CV6 1HQ
  • 1889 Pershore Road, Birmingham, B30 3DJ
  • 3 Swinford Avenue, Glen Parva, Leicester, LE2 9RW
  • 755 Aylestone Road, Leicester, LE2 8TG
  • 513 King’s Road, Chelsea, London, SW10 0TX
  • 157 High St, Harbone, Birmingham, B17 9QE

At the time of going to press, Jhoots had not provided a comment to C+D about the acquisitions.

Where else will Lloydspharmacy cease trading?

You can use C+D's map to view the location of each of the 190 "unviable" Lloydspharmacy branches so far confirmed for closure or sale.

Branches confirmed for closure are marked in purple, while Lloydspharmacies up for sale are marked in blue. The branches that have been sold are marked in orange.

This map is live, and will be updated as C+D confirms the locations of further affected Lloydspharmacy branches.

10 Comments
Question: 
Are there any acquisitions happening in your area?

SIMON MEDLEY, Community pharmacist

didn't AAH aquire lloyds when Alan LLoyd bit of more than he could chew and went belly up owing AAH  a load of dosh ?  Maybe Jhoots board are too young to remember that

Aryan Butt,

The title of the article should be unviable chain buys unviable shops. Most Lloyds shops that were sold but not all will require drastic action to bring into profit. Some I doubt will become profitable in anybodys hands.

Most if not all of Jhoots pharmacies are held by Jhoots Healthcare Limited, Jhoots Chemist Limited and Pasab Limited.

In Nov 2017 Christies were marketing 10 Jhoots shops. All were loss making and were not sold. No buyers were found for them. 

The latest accounts to be filed for the above companies at companies’ house to the year dated 31st Aug 2017 show:

Combined losses on the original 62 odd shops show trading losses of over 1 million for the last trading year

According to the same accounts before the recent purchases loans appear to be in the region of £10 million with significant creditors on top of this.

In Pasab’s notes to the accounts state  

The company was unable to meet certain debt servicing benchmarks set out in its bank loan agreements during the year ended 31st August 2017 (and the period subsequent to the year end up to date of approval of these financial statements. (sic the accounts are signed off as 28th May 2018) The directors have therefore classified the outstanding loans as 31st August of £6,265,874.00 as creditors falling within one year. As a result the company has been in dialogue with the bank and is liaising with them to achieve business turnaround and restructure......” 

Similar sentiment is in Jhoots Healthcare

In the directors reports they actually admit that they will sell some of their shops and restructire

The losses over the last two years would be even more had there not been sale of shops between the companies. Simply one company sells to another company with identical directors and shareholders creating goodwill by one company giving the other IOU’s which appear as creditors.

 

This company is at the mercy of it's main suppliers and the banks  

The Chairman and Financial Director appear to have resigned in the last 12 months.

 

R A, Community pharmacist

Just a basic business lesson for the directors of Jhoots. All business derive profitability from volume, price and cost of operation. 

Pharmacy volume continues to increase but the government is continuing to reduce reimbursement, therefore, the price is reducing. Incidentally, it means they make more or less the same as they did 10 years ago. However if inflation is factored in which is 2.5% per year, in real money they only make something like 77.6% profit of what they achieved 10 years ago.

This would be fine if the cost of operating a pharmacy could be reduced but as Lloyds Pharmacy found to their peril. In pharmacy, this option has been exhausted.  It is no longer possible to reduce further cost unless you wish to operate with just a pharmacist!

This makes me wonder what they will do to make these pharmacies work? Also have they factored in GPhC inspecting the premises?

Peter Sainsburys, Community pharmacist

If Lloyds couldn't profit from these premises with their notoriously ungenerous methods, then buying them up can only be a very foolhardy enterprise.

Beta Blocker, Primary care pharmacist

St Thomas road in Derby was sold ages ago.... maybe 2years ago atleast...

Paul Dishman, Pharmaceutical Adviser

Posting about the two pharmacies on the list that I know about: 37 Sidwell St, Exeter has been run on locums for ages and was generally run down, so disposing of that isn't a surprise. Blackbrook in Taunton is a surprise, however, that was an excellent business-perhaps the surgery wanted too big a rent

Paul Dishman, Pharmaceutical Adviser

Lloyds have sold the pharmacy at Chiddenbrook Surgery, Threshers, Crediton, Devon. It's now called Threshers Pharmacy.

Peter Sainsburys, Community pharmacist

You mean it's an off-license?

Paul Dishman, Pharmaceutical Adviser

https://maps.apple.com/place?address=Threshers%20Crediton%2C%20England&ll=50.790951%2C-3.671576&lsp=6489

 

Stafford lloyds in sainsburys closed on 10th June 

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