Jhoots Update 14 November 2025

Where a branch is likely to fail, practices should consider, as soon as they can, whether it is advisable to allow Jhoots to remain in occupation, or whether steps should be taken to terminate their tenancies now.  In making this decision, practices will want to consider:

• The likelihood of the branch surviving in its current form or being taken over by another operator who may keep it going.
• The level of arrears owed and the likelihood of those arrears or other liabilities being settled or increasing to unsustainable levels.
• The likelihood of being able to use the space for other purposes if Jhoots vacates, and any impact this may have on practice income.  If another pharmacy may want to take over the branch, practices should consider the likelihood of that pharmacy being able to acquire the necessary licence.
• The overall short- and long-term consequences and prospects for patients where a branch is closed and put to another use, as compared to maintaining the status quo.
• That rights Jhoots has and how easy it will be to terminate their occupation.  Some Jhoots pharmacies occupy as "tenants at will", which can be terminated very easily.  Others may contain break clauses or forfeiture clauses which will allow the lease to be ended in the case of a breach.  Where a branch has already entered administration, the options will be more limited and it may take some time to recover possession of the pharmacy. If administration seems likely, Practices should consider their termination options urgently so that it can exercise these before its options are restricted.

Where arrears are owed, practices may have options to recover those sums.  The options available, and the likelihood of recovering anything, will depend on the arrangements in place:

• Some practices took deposits.  These may be available to be drawn down, depending on their terms.
• Some practices took guarantees from Jhoots parent companies. These guarantees may still be called upon, even if the branch subsidiary fails.  (Guarantees provided by Lloyds cannot now be enforced, as Lloyds has since been wound up).
• In some cases, it may be lawful to seize Jhoots stock to defray sums owed.  The rules for doing this are complex and may not be suitable in many cases.
• Where a Jhoots company (or a guarantor) will not pay the arrears, court proceedings may be necessary to recover the sums owed.
• If a Jhoots company enters administration or liquidation, the sums may not be recoverable in the normal way, but might be claimed through the insolvency process. If Jhoots do not have sufficient assets once all the costs of a liquidation are taken and the secured creditors are paid, it is unlikely that the practices will recover the arrears. 

Practices should be cautious about any suggestion that a branch has been sold to another provider.  Practices should visit their pharmacies to see if they can obtain any insight on who is actually trading from them.

• Most leases contain some prohibitions on the assignment of the lease to someone else. Some may prohibit assignment altogether. Practices should be alert for request to assign leases, which in most cases must be responded to very quickly. This is often an opportunity to refuse the assignment, or to ask for debts to be paid or security to be put up for the lease. Failing to respond, or failing to respond properly, may allow the lease to be assigned without the practice's agreement and without the opportunity to take security for it.
• If a lease is assigned without the proper consents in place, the practice may be able to terminate the lease. This may be important if the practice does not have confidence in the purchaser. This will usually need to be done quickly. Practices should be on alert for notifications that a lease has been assigned, rent being received from a different company, or branding being changed at the branch.
• If Jhoots' occupation has already been brought to an end, there may be nothing for Jhoots to sell to another provider. Be wary of letting Jhoots or any other provider resume occupation of the pharmacy, as doing so may create a new tenancy by implication, which may be difficult to terminate. Where Jhoots has already vacated, make sure to collect in all the keys, change the locks, and be wary of anyone trying to use the space without your agreement.

We are hearing similar stories from practices across the country. However, we are limited in the information that we can share to let other practices know what is going on in their area.

Practices should therefore talk to each other as openly as possible about any difficulties they are having, so that they can identify common themes and discuss what has worked for them.