The sorry history of PPE Medpro is well known. During Covid, it contracted with the Department for Health and Social Care to provide surgical gowns that were not fit for purpose. The department sued and obtained judgment and the company promptly went into administration.
The administrators circulated their proposals to creditors and the department voted against them, meaning that they remained unapproved by creditors.
The administrators therefore applied to court for directions and the department appeared to ask that the court wind up the company and put its affairs into the hands of the official receiver.
The judge found that the department’s claim against the company constituted about 70% of the total value of creditors and, if HMRC’s claim was reduced, as anticipated, that may increase to in excess of 90%.
The judge considered whether the administrators could be achieved in principle. However, in light of the department’s position as vast majority creditor and accepting that the secured creditor’s position would not be prejudiced by any liquidation, the ICCJ ordered a conclusion of the administration and wound the company up.
The department made no criticism of the administrators and had previously approved the administrators’ fees.
In the matter of PPE Medpro Limited [2025] EWHC 3449 (Ch)
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