One of England’s top 10 pharmacies by item numbers went into administration last December owing millions to wholesalers, drug manufacturers and a host of other creditors, recently published documents indicate. 

On December 17, P3pharmacy reported that Remedi Solutions – which delivered medicines to care homes and in September dispensed over 82,000 items making it the eighth biggest dispenser in England that month – had gone into administration on December 6, announcing to its workers that it had been bought and renamed Remedi Healthcare by its new owners, who planned to continue the previous company’s activities. 

The business was bought by Nadeem Sarwar, the entrepreneur behind same-day medicines delivery company Phlo. In a press release from administrators PKF Francis Clark, Mr Sarwar said he planned to invest in the company’s existing “top-class digital platform for pharmacy in care homes” to drive its performance and that all 83 Remedi Solutions staff members would be kept on at Remedi Healthcare. 

PKF Francis Clark said “cash flow problems” had forced the previous company into administration. It lost £4.7m in 2023 and £1.8m the year before that. 

A statement of affairs for Remedi Solutions published on the Companies House website last week revealed that the former company owed £5.78m to 93 creditors when it went into administration on December 6, including £204,643 owed to HMRC in four debts relating to PAYE and redundancy payments. 

The largest single debt is to Scottish wholesaler Ethigen, who were owed £1.19m. Other creditors include wholesalers Lexon UK (owed £346,949), Alliance Healthcare (£157,516), Meanwood Wholesale (£14,365) and Aver Generics ((£6,180). 

Flu vaccine manufacturer Seqirus was owed £58,320, while specials manufacturer IPS Pharma was owed £26,591 and logistics company Clarity Pharma £19,853.

Automation company Robopharma was owed £35,195 and software company Med E-Care Health Care Solutions £67,594. 

Some debts have been secured with personal guarantees from former Remedi Solutions director Kenny Black, who P3pharmacy understands has joined the new Remedi Healthcare as an employee. Mr Black was previously managing director at Rowlands Pharmacy until 2019. 

These secured debts include £1.08m owed to wholesaler AAH Pharmaceuticals and a number of debts owed to lending companies such as Just Cash Flow (owed £11,912), Iwoca (£181,587), Alternative Bridging Company (£252,804) and FSE Group (£629,846).

Invoice financing company CastleBridge Finance, which is listed as being owed £809,693, has a personal guarantee from Mr Black with a value of £25,000.

The company’s total estimated assets available for “preferential creditors” amounted to £768,448, of which an estimated £262,425 could be realised to service debts. These assets include £359,045 listed under ‘plant and machinery’, £252,824 under ‘stock’ and £277,024 in debts owed to Remedi Solutions. 

The assets also include £330 in cash held by a third party.

P3pharmacy has approached Remedi Healthcare for comment.