"The consortium behind PPE Medpro has announced its readiness to enter discussions with the company's administrators to explore a possible settlement with the government, following the High Court's ruling that the firm must repay £121.9 million for breaching its PPE contract with the Department of Health and Social Care (DHSC). In a statement shared with Business Matters, a spokesperson for the consortium said: "The consortium partners of PPE Medpro are prepared to enter into a dialogue with the administrators of the company to discuss a possible settlement with the government.""
"The announcement follows nearly five years of legal proceedings and mounting political pressure, with PPE Medpro having spent £4.3 million defending its position in court - and consistently maintaining that it delivered all 25 million gowns required by the £122 million contract."
"Throughout the process, PPE Medpro offered to settle on a no-fault basis, including proposals to either remake the entire 25 million gown order or pay a £23 million cash equivalent. These offers, made repeatedly before, during, and even after the trial, were rejected by the DHSC. By contrast, a separate £135 million claim the DHSC brought against Primerdesign Ltd was settled quietly for £5 million, on a no-fault basis, just weeks before trial. Critics now argue that the government's handling of the Medpro dispute has been inconsistent and politically charged, particularly as the gowns supplied by PPE Medpro - although found not to meet sterility requirements under a technical clause - were never suitable for NHS frontline use due to being single-bagged, a feature the DHSC reportedly failed to specify across all gown contracts at the time."
The High Court ordered PPE Medpro to repay £121.9 million for breaching a PPE contract with the Department of Health and Social Care. The consortium says it is ready to enter discussions with the company's administrators to explore a government settlement. PPE Medpro spent £4.3 million defending its position and maintains it delivered all 25 million gowns under a £122 million contract. The company repeatedly offered no-fault settlements — remaking the 25 million gowns or paying a £23 million cash equivalent — which the DHSC rejected. Critics flag inconsistent government handling and specification failures around gown packaging and sterility.
Read at Business Matters
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