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PPE Medpro on Brink of Administration Ahead of High Court Ruling on £121m Gown Claim

The health department seeks to recover the contract price for gowns it says were not sterile.

Overview

  • Court filings show a notice to appoint administrators for PPE Medpro was lodged, and Forvis Mazars said two partners have been appointed as joint administrators by a secured creditor.
  • Mrs Justice Cockerill is due to hand down judgment on Wednesday in the government’s case over the disputed surgical gown contract.
  • The Department of Health and Social Care seeks to recoup £121,999,219.20 plus £8,648,691 for transport and storage after rejecting 25 million gowns in December 2020.
  • PPE Medpro denies breach, accuses the government of buyer’s remorse, and says it offered to replace the gowns or pay £23 million to settle, offers it says were rejected.
  • Recent accounts show net assets of about £666,000 after spending more than £4.2 million on legal costs, while a separate National Crime Agency fraud investigation and asset-freeze orders remain in place.