Ms Mone, famous for modelling her saucy underwear, was made a Tory peer as a reward after she opposed Scottish independence and came out for the Tories at the election. She has been made ” business start-up czar by David Cameron. However, doubts are being cast on her business acumen by other Scottish entrepreneurs:
“… PRESSURE is growing on the UK Government to explain its appointment of Michelle Mone as its start-up czar after another leading Scottish businessman cast doubt over her suitability for the post.
The announcement that the lingerie entrepreneur would lead a review into encouraging start-ups in areas of high unemployment has caused controversy, amid claims that her high-profile owed more to skilful PR manipulation than meaningful success in the private sector.
… Despite achieving fame through the tabloids as the joint-founder of Ultimo bras and selling a rags to riches story having been raised in Glasgow’s East End, Ms Mone’s firm MJM International suffered losses of £780,000 in its last year, 2013, before passing its assets to its parent company, Ultimo Brands, which also made a loss, and ceasing to trade. Ms Mone has sold most of Ultimo Brands to a firm from Sri Lanka but remains a director.
An auditor’s report on MJM International accounts, for a period to the end of 2013, state that the company made “significant losses” over the previous 11 months and made a comment on a £135,000 transaction.
The report states: “With respect to one related party balance included within amounts owed to related undertakings of £135,000, the audit evidence available to us was limited because no confirmation of the related party balance was provided.”
A representative for Ms Mone, who is a Conservative Party supporter, said “no comment” after being offered the chance to respond to Mr Pirrie’s comments. …”