Celesio UK is to cease trading in approximately 190 of its LloydsPharmacy stores in England, through a combination of store closures and divestments. 

The company says that the move is a direct result of recent Department of Health and NHS England cuts to reimbursement policy and increases in retrospective clawbacks. 

Cormac Tobin, managing director, Celesio UK, said: “Changes to government policy on reimbursement and retrospective clawbacks over the past two years have gradually made operations at many LloydsPharmacy stores commercially unviable. We will be doing all that we can to support our affected colleagues and minimise disruption for patients. 

“As a company we pride ourselves on putting the customer first by constantly finding new ways to evolve in order to achieve excellence in quality, safety and efficiency for the NHS. We look forward to working with the Department of Health and NHS England in the future to ensure that we can shape a new framework which allows us to invest, innovate and continually improve our service to patients.”

The company says it will help support smooth transitions to new contractors, to ensure an uninterrupted service for customers. 

Tobin said the closures were the beginning of a transformation for the business that will combine the accessibility of its physical pharmacies and their teams, the customer convenience of digital channels and harness the skills of its people to provide a broader range of healthcare.