The High Court has found PPE Medpro in breach of its contract to supply sterile surgical gowns to the NHS during the Covid-19 pandemic. As a result, the joint liquidators from Interpath Advisory are now pursuing six individuals and five companies linked to the firm in an effort to recover millions owed to the taxpayer.
The individuals being sued include Baroness Michelle Mone and her husband, Doug Barrowman, who have been approached for comment. The case marks a sharp escalation in the saga surrounding PPE Medpro, which was set up in 2020 to supply protective equipment for frontline health workers.
PPE Medpro won its first government contract through the VIP lane, a fast-track route used for politically connected suppliers, after a recommendation by Baroness Mone. However, the company was found to have breached the contract, and the government sued, claiming the medical gowns did not meet relevant healthcare standards.
The High Court ruled in the government's favour last year, and despite winning the case, recovering the money has proven to be a significant challenge. The company itself held less than £1m on its balance sheet and was put into liquidation in December 2025.
The personal dimension of the case is striking, as individuals who were never directors of PPE Medpro are being pursued for their alleged involvement. Baroness Mone and her husband initially denied any connection to the company, but later admitted to being beneficiaries of a trust that received some of the firm's profits.
The liquidators are not the only creditors circling, as HMRC has lodged a £39m claim against PPE Medpro for tax it says the company owed. The National Crime Agency is also continuing a criminal investigation into PPE Medpro.
The case has become a reference point for the SME community on the limits of the corporate veil, highlighting the ability of liquidators to pursue ultimate beneficial owners when a company has been emptied of cash and wound up.
The recovery of funds is now in the hands of the appointed liquidators, with the government reiterating its expectation for robust action. The outcome of the case will likely have significant implications for business owners and the wider community.
The case serves as a reminder of the importance of accountability and transparency in business dealings, particularly during times of national crisis. As the saga surrounding PPE Medpro continues to unfold, it remains to be seen how the liquidators will proceed and what the consequences will be for those involved.
