A controversial PPE company associated with Baroness Michelle Mone has been liquidated today for failing to repay nearly £150 million to the government. PPE Medpro went into administration in September owing £148 million to the Department of Health and Social Care following a court ruling on ineffective Covid gowns. In addition, the company reportedly owes around £39 million to the tax authorities.
The decision to wind up the company was made in a London court hearing, where Judge Sebastian Prentis emphasized the significant debt incurred by the company due to supplying faulty equipment during a national crisis. The government pushed for the company to be placed under the Official Receiver for further investigation.
The Secretary of State for Health and Social Care, the primary creditor of PPE Medpro, sought an immediate winding-up order citing insolvency issues. The company’s financial woes extend to owing substantial amounts to HMRC and other creditors. Baroness Mone, known for her involvement in Ultimo lingerie, is under scrutiny for her ties to the company and potential financial gains.
PPE Medpro, established solely for PPE sales to the UK government during the Covid-19 pandemic, faced legal challenges over the quality of its supplied gowns. The company’s directors, including Baroness Mone, are now under investigation by the National Crime Agency. The total debt owed to the Department of Health and Social Care is approximately £148 million, including interest.
Despite claims of potential recoveries from legal actions and assets, the company’s financial situation remains dire. Efforts are ongoing to retrieve taxpayer funds from PPE Medpro, with the Health and Social Care Secretary expressing determination to hold accountable those responsible for the defective PPE supplied during the pandemic. Barrowman and Baroness Mone maintain their innocence amidst the ongoing investigations.
