Lloydspharmacy: Jhoots rent row leaves town without pharmacy ‘indefinitely’
“Crazy” NHS contract arrangements have left a Devon landlord unable to move in a new pharmacy after evicting a Jhoots branch that it says didn’t pay “a penny” of rent, C+D has learned.
A Devon town has been left with just one “tiny” pharmacy after a branch of Jhoots was “evicted” from an ex-Lloydspharmacy premises for not paying rent “from day one”, C+D has learned.
“When Lloydspharmacy was liquidated” earlier this year, Jhoots “somehow managed” to go into the premises “with no authority from” the landlord, specialist property agency Charles Darrow, which is acting on behalf of the landlord, told C+D last week (July 19).
Adding that “the liquidator had something to do with it”, Charles Darrow director Paul Heather said that the pharmacy chain had “no right to be in the premises or trade from it” and “no lease assignment”, however they were “still granted [a] contract by NHS Devon”.
Last month (June 24), the premise’s landlord Bill Hughes told C+D that “bailiffs entered the Jhoots pharmacy in Holsworthy, Devon…on the instructions of the landlords’ solicitors for nonpayment of rent” on May 1.
But Heather told C+D that the pharmacy chain had not paid “a penny” of rent to the landlord.
He added that the landlord “did try to negotiate new lease and rent” with Jhoots, but “didn't get anywhere - they just went underground in the end”.
Jhoots told C+D that it “[disputes] the facts recalled by the landlord” and stressed “that many genuine attempts were made by [the chain] to reach an amenable deal with the landlord”.
“We wanted to continue our occupation and operation of the pharmacy to enable us to keep providing vital services to the town,” the pharmacy chain said.
“Throughout discussions via solicitors we have tried to emphasise to the landlord that patients were going without and the impact this may have [but] unfortunately, mutually acceptable terms could not be agreed,” it added.
“We can also confirm that all members of staff from the pharmacy are currently employed by Jhoots,” it said.
“Crazy” legislation must change
Despite having no “right to occupy the premises”, the pharmacy “contract is still held by Jhoots”, Heather told C+D.
“It does appear that if a pharmacist wants to apply for a contract for a location, they don't even need to prove that they have the right to occupy the premises – which to me seems crazy,” he said.
“Whereas [the NHS] will spend months actually approving a premises for use as a pharmacy” – making sure that the “doorways are the right widths and all the rest of it” – “they don't actually bother to check whether the pharmacist has actually got a lease… I just couldn't believe [it]”, he added.
“NHS England (NHSE) isn't putting any pressure on Jhoots to do anything” and “will allow them an indefinite period to source new premises…as far as I know there aren't any in the town”, Heather told C+D.
He said that the commissioner told him that if Jhoots “takes too long, apparently [it will receive] a financial penalty” but that it was “very reluctant to give [him] timescale”.
“If Jhoots wants to take six months, the town doesn't have a pharmacy for six months - meanwhile, I've got someone who is quite happy to go in there tomorrow,” he added.
“I don't think that's right and I think the legislation needs changing”.
“Morally wrong”
Heather told C+D that NHS Devon’s decision to maintain Jhoots’ contract “seems very, very unfair on the local community”.
“It just seems to me morally wrong that these guys can just take their time [and] may not have any intention of being actively looking for somewhere,” he added.
“The most difficult part for me is how it affects the local community - they've obviously been without their pharmacy since May, when [Jhoots] was evicted,” he said.
He added that currently, Holsworthy only has “a tiny little in surgery pharmacy…and that’s massively oversubscribed now, you can imagine how long you’ve got to wait”.
“Pharmacy laws are complex”
A spokesperson for NHS Devon told C+D on Monday (July 22) that “the issue with the lease is a private arrangement between the landlord and Jhoots Pharmacy”.
“NHS Devon has been working closely with Jhoots Pharmacy and managing the situation within the national pharmacy regulations,” they said.
“Pharmacy laws are complex and the ability to open a pharmacy has a regulatory requirement, unlike a normal business,” the spokesperson added.
“While we appreciate this has been a difficult situation, we are currently working with Jhoots Pharmacy to reinstate pharmaceutical services in the town for the people of Holsworthy,” they said.
NHSE declined to comment from a national perspective.
Lloydspharmacy bailiff drama
The Jhoots branch is the fourth premises to be repossessed by bailiffs in connection with Lloydspharmacy’s liquidation.
C+D approached Lloydspharmacy’s former parent company the Hallo Healthcare Group (HHG) for comment.
In April, bailiffs repossessed another Jhoots branch previously operated by Lloyspharmacy in Rainham, Kent.
And in February, a patient was landed in hospital after landlords sent bailiffs to change the locks of Rimmington’s Pharmacy in Bradford, which had sublet its premises from Lloydspharmacy.
Earlier this year, C+D revealed that the former landlord of Lloydspharmacy’s former holding company is also owed £450k by the company.
