A 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 with a debt of £148 million to the Department of Health and Social Care following a legal battle over ineffective Covid gowns. Additionally, the firm reportedly owes around £39 million to the tax authority.
In a court session at the Rolls Building in central London, Judge Sebastian Prentis decided to wind up the company due to the substantial debt owed to the government. The judge emphasized the importance of investigating how the debt could be recovered since there is limited remaining company funds.
Following a request from the Secretary of State for Health and Social Care, an immediate winding-up order was sought against the company. The Secretary of State is the primary creditor, accounting for nearly 79% of the unsecured debts, with HMRC being the second significant creditor.
Baroness Mone, known for her lingerie business Ultimo, has faced calls to relinquish her OBE and peerage. The Department of Health and Social Care had awarded government contracts to PPE Medpro for PPE supply during the Covid-19 pandemic, facilitated through a government priority system for politically connected individuals.
Inspectors raised concerns about the quality of the delivered gowns, leading to a legal dispute with the government. The company’s directors and stakeholders, including Baroness Mone, are under investigation by the National Crime Agency for their involvement in the matter.
PPE Medpro’s administrators reported a total debt of £148 million to the DHSC, including interest, with limited assets available for repayment. The company’s sole director claimed a debt owed to HMRC, while legal proceedings against third parties may offer a chance for financial recovery.
Health and Social Care Secretary Wes Streeting expressed determination to recover taxpayer funds from PPE Medpro and ensure accountability for supplying defective PPE during the pandemic. Baroness Mone and her husband, Doug Barrowman, have denied any misconduct in relation to the company.