The PPE company associated with Baroness Michelle Mone has been shut down today for failing to repay the government almost £150 million, making it unlikely that the full amount will be recovered. PPE Medpro entered administration in September with a debt of £148 million to the Department of Health and Social Care following a court ruling on ineffective Covid gowns. Additionally, the company reportedly owes around £39 million to the tax authorities.
A court hearing in London resulted in the decision to wind up the company due to its substantial debt incurred from supplying faulty equipment during a critical time of need. The Official Receiver will now oversee the company to investigate potential recovery options.
The Secretary of State for Health and Social Care, the largest creditor of the company, pushed for the immediate winding-up order citing insolvency issues. HMRC is the second significant creditor, claiming over £39 million from PPE Medpro.
Baroness Mone, known for her prior business ventures, has faced criticism and calls to revoke her titles over her involvement with the company. She and her husband are under investigation by the National Crime Agency for benefiting from the company’s profits.
The company’s administrators reported that PPE Medpro owes a total of £148 million to the DHSC, including interest. With minimal assets remaining, potential legal claims against third parties may offer a chance for recovery.
Health and Social Care Secretary Wes Streeting emphasized efforts to reclaim taxpayer funds from companies like PPE Medpro. Despite denials of any wrongdoing, the company’s closure marks a significant development in the aftermath of the PPE scandal.