Mon, 21 Aug 2023 | ADMINISTRATION
A pharmacy group based in the North East is seeking a buyer after falling into administration. Northcare Limited and Medway Limited, along with five subsidiaries, have entered administration following a period of financial difficulties.
Administrators from FRP Advisory have been called in to oversee the search for a buyer for the Gateshead-based group, which is responsible for eight pharmacy shops throughout the North East and in Yorkshire.
According to administrators, the group has faced financial challenges over recent months, which had impacted the cashflows of its businesses and the group’s ability to service its debts. The most recent accounts for Northcare and Medway, covering the year to the end of May 2022, show that the two firms had bank liabilities of over £3.8 million between them.
Despite the financial struggles the businesses have faced, no redundancies have been made so far and all of the shops in the group will continue to trade as normal under the administrators while a buyer is sought.
The administrators have begun a marketing exercise to find potential buyers for the group’s shops, which include Spinks the Chemist in Beverley and Gateshead, Norfolk Park Pharmacy in Sheffield, AD Phillips and Phillips Chemist in Trimdon, Wolsingham Pharmacy in Wolsingham and Newham Pharmacy on the Hardwick Estate.
Commenting on the process, FRP partner and joint administrator Steven Ross said: "Pharmacies provide essential services to local communities, so it has been vital that we move quickly to bring forward the administration and create a protective structure to enable the eight sites across the group to keep trading.”
"We are committed to engaging with suppliers, customers and health and care providers, including the NHS, to ensure a continuity of service while we prepare for a sale process that can support the long-term future of the pharmacies. In the meantime, we would encourage any parties to come forward to register their interest."
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