A PPE company connected to Baroness Michelle Mone has been shut down after failing to repay the government approximately £150 million. PPE Medpro went into administration in September with debts of £148 million to the Department of Health and Social Care following a legal battle over ineffective Covid gowns. Additionally, the firm reportedly owes £39 million to the tax authorities.
During a court session in London, Judge Sebastian Prentis decided to wind up the company, emphasizing the substantial debt incurred by supplying faulty equipment during a national crisis. The government pushed for the company to be handed over to the Official Receiver for further investigation.
The Secretary of State for Health and Social Care, the company’s largest creditor, sought an immediate winding-up order, citing its insolvency status. The court revealed that HMRC is the only other significant creditor, claiming over £39 million from PPE Medpro.
Baroness Mone, known for her involvement in Ultimo lingerie, has faced calls to lose her honors due to her association with the company. The firm, established to supply PPE during the pandemic, faced scrutiny for delivering non-compliant gowns, leading to legal action by the government.
Despite initially denying any links to PPE Medpro, Baroness Mone later admitted her involvement and benefitted from substantial profits. The National Crime Agency is now investigating the company and its owners. The company’s administrators reported a debt of £148 million to DHSC, including interest, with limited remaining assets.
The company’s director claimed outstanding debts with HMRC, while the joint administrators suggested potential legal claims could lead to fund recoveries. Health Secretary Wes Streeting vowed to recover public funds from rogue operators like PPE Medpro, emphasizing the government’s commitment to retrieving taxpayer money.
Baroness Mone and her husband have denied any wrongdoing.