PPE Medpro, a company specializing in personal protective equipment, has recently entered administration, facing a significant tax debt of £39 million to the UK government. The situation has drawn attention from Health Secretary Wes Streeting, who stated the government would exhaust all efforts to recoup the owed funds.
Financial Overview of PPE Medpro
Current reports indicate that PPE Medpro has only £672,774 available for unsecured creditors. This amount falls drastically short of the extensive debts owed to the Department of Health and Social Care (DHSC). According to the administrators, the total debt to the government appears to be even larger than initially estimated.
Background of PPE Medpro and Its Contracts
PPE Medpro was established in May 2020 during the Covid-19 pandemic, a period marked by urgent demands for PPE as healthcare facilities dealt with severe shortages. The company was formed by a consortium led by Doug Barrowman, the husband of Baroness Mone. Notably, it secured a government contract to supply masks through a special “VIP lane” due to a recommendation from Baroness Mone.
Legal Challenges and Profits
The DHSC has taken legal action against PPE Medpro, winning damages based on allegations of contract breaches related to the supply of medical gowns. In a 2023 interview, Doug Barrowman acknowledged being the ultimate beneficial owner of PPE Medpro and revealed that he received over £60 million in profits from the business.
Baroness Mone’s Involvement
- Baroness Mone, founder of the lingerie brand Ultimo, acknowledged that a portion of the profits from PPE Medpro was placed in a trust benefiting her and her children.
- The trust linked to Mr. Barrowman is associated with an Isle of Man company known as Angelo (PTC), which has a secured debt of £1 million to PPE Medpro.
- This debt is likely to take precedence over government claims when it comes to any repayment of funds.
Future Outlook
The administrators’ report suggests there may be sufficient funds to fully repay the secured debt owed to Angelo (PTC). However, the receivership process will determine the exact outcomes for both unsecured creditors and government stakeholders.
Efforts to obtain comments from Arthur Lancaster, who officially holds shares in PPE Medpro, and a spokesperson for Doug Barrowman have not elicited any responses as of yet. The unfolding situation continues to raise questions about the financial and ethical implications of contracts awarded during a time of crisis.
