Michelle Mone-Linked PPE Firm Open to Settlement in Covid Gowns Dispute

PPE Medpro is required to return almost £122 million to the Government following a breach of contract for supplying surgical gowns during the pandemic.

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Associates of a business linked to Baroness Michelle Mone have expressed their readiness to “start discussions” regarding a “potential settlement” after a directive to reimburse millions due to a breach of a Covid-19 PPE agreement.

PPE Medpro is mandated to repay nearly £122 million to the Government for failing to fulfill a contract regarding the provision of surgical gowns during the health crisis.

Earlier this month, PPE Medpro, led by Lady Mone’s spouse Doug Barrowman, initiated proceedings to enter administration.

In a declaration, Mr. Barrowman stated, “The partners of PPE Medpro are willing to start discussions with the administrators of the company to explore a potential settlement with the Government.”

The consortium received government contracts from the previous Conservative leadership to supply personal protective equipment (PPE) during the pandemic, following Lady Mone’s recommendation to ministers.

The Department of Health and Social Care (DHSC) pursued legal action against PPE Medpro in the High Court, alleging that the gowns provided were “defective” due to not being sterile.

During the trial, Mrs Justice Cockerill concluded that the gowns “were not, contractually speaking, sterile or properly validated as being sterile,” rendering them unusable in the NHS.

Lawyers for PPE Medpro argued during the trial that the company had been “singled out for unfair treatment” and accused the Government of “buyer’s remorse,” asserting the gowns became defective due to the conditions they were stored in post-delivery.

Lady Mone condemned the judgment, labeling it a victory for the “establishment,” while Mr. Barrowman described it as a “miscarriage of justice.” It is understood that the partners are eager to resolve the issue, and administrators have been encouraged to engage with the Government to negotiate a settlement.

Medpro UK spent £4.3 million defending its position. It stated that proposals to settle on a no-fault basis had been made, including either remaking the 25 million gowns or offering a £23 million cash equivalent, but these were declined.

PPE Medpro maintains that it delivered all 25 million gowns and disputes the claim that the gowns were not sterile. The company asserts that the court’s decision was based on a technicality.

The gowns had a resale value of £85 million at the end of 2020, and had they been sold on the international market as non-sterile gowns, the company noted.

Baroness Mone, who founded the lingerie brand Ultimo, which she sold in 2014, was appointed a Conservative peer by David Cameron in 2015. She has stated that she has “no desire to return” to the House of Lords as a Conservative peer.