In a dramatic development, PPE Medpro, the company that supplied 25 million defective surgical gowns to the NHS during the height of the Covid pandemic, has been ordered to be wound up by the Insolvency and Companies Court in London.
The move makes it increasingly unlikely that taxpayers will ever see the staggering £187 million owed, including £122 million paid by the Government, £26 million in interest and legal costs, and £39 million in unpaid taxes to HMRC.
Government Loses Hope of Full Repayment
The firm had already been ordered by a High Court two months ago to repay the Government for breach of contract, following a lengthy legal battle.
At today’s hearing, the Department for Health and Social Care (DHSC) pressed for compulsory liquidation, arguing that PPE Medpro was “hopelessly insolvent.”
Judge Sebastian Prentis agreed, placing the company into liquidation and ending the administrators’ management of the firm.
Tiny Assets, Massive Liabilities
Documents filed by PPE Medpro’s administrators revealed the firm had only around £600,000 available to cover debts.
In contrast, the DHSC alone is owed over £148 million, including interest and legal costs, while HMRC is chasing £39 million in unpaid taxes.
The court heard that the company had just one secured creditor, Angelo (PTC) Limited, registered in the Isle of Man — an entity linked to Baroness Mone and her husband Doug Barrowman, who controlled PPE Medpro.
Baroness Mone and Doug Barrowman Under Scrutiny
Baroness Michelle Mone, often dubbed ‘Baroness Bra,’ has long denied involvement with PPE Medpro, though she admitted lobbying ministers over business contracts totaling £200 million.
Both she and Mr Barrowman have had £75 million of their assets frozen amid a National Crime Agency fraud investigation.
They deny wrongdoing and have not been charged, but the case has kept them under intense public and legal scrutiny.
Administration Preceded Court Ruling
Interestingly, PPE Medpro filed for administration the day before the High Court ordered repayment to the DHSC.
Administrators argued that the firm had potential claims against third parties that could recover some funds, but with the company clearly insolvent, the judge ruled that winding it up was the only realistic option.
Legal Teams Highlight Insolvency
During the hearing, Simon Passfield KC, representing the administrators, stressed that PPE Medpro’s limited property could barely cover its secured creditor.
David Mohyuddin KC, for the DHSC, emphasized that the company was “very significantly insolvent” and that there was no feasible alternative to liquidation.
What Happens Next
While there have been murmurs that PPE Medpro could attempt to sue the suppliers of the defective gowns, experts say success is unlikely.
For now, the Government faces the grim reality that the bulk of the £187 million paid out will likely never be recovered, leaving taxpayers with a significant financial loss.
The Shadow of Controversy
The case has reignited debate over political influence in business, the handling of Covid-related contracts, and the protections limited companies afford their owners.
For Baroness Mone and Doug Barrowman, the legal and public spotlight shows no sign of dimming as the investigation continues.
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