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Worth noting that Purple Medical's Chief Exec boasted elsewhere: "We are a long-term partner of the Department of Health and Social Care (DHSC) as well as the NHS. Purple Surgical was therefore able to access central procurement within the Cabinet Office." https://www.theguardian.com/society/2020/nov/03/45m-deal-for-nhs-masks-collapses-amid-claims?CMP=share_btn_tw
Also worth noting that we, UK taxpayers, paid £44.5m for the disappearing masks - 100% of it upfront. ( https://atamis-1928.cloudforce.com/sfc/p/#0O000000rwim/a/4J000000kDlh/B2azGGJ5G.sxpHG1RQUx4PESVqinCtZSID9a7f4ho00).
The Guardian reports we bought 5 million masks from Purple Surgical for £44.5m (a per unit price of £8.90 each).
On 28 April, Govt's own figures show the benchmark price we were paying other suppliers for FFP3 masks was about £3.25, i.e. £16.25m for 5,000,000 compared to the £44.5m paid to Purple Surgical which "was able to access central procurement within the Cabinet Office."
Purple Surgical's Chief Exec is promising to repay the £44.5m if the masks can't be supplied. But the last reported equity of the company is only ~£2m so it's not clear to me how that happens.
You might think that all of this illustrates the dangers of using secondary suppliers and paying huge deposits.
