Farepak customers to get 15p a pound
Payouts to customers who lost money when Farepak collapsed have been trebled to 15p for every pound lost – yet there is no sign of people getting their money any time soon.
The Christmas hamper firm went into administration in 2006 leaving savers who had invested in the savings scheme with an average loss of £400. However, some people had saved up to £2,000 with the company which was designed to cut the cost of Christmas.
Many of the victims were pensioners or those on low incomes.
Customers were expecting to get 5p for every pound they lost but this has been upped to 15p, taking the total to £4 million. However, this still falls far short of the £38 million they were hoping for. Under the latest settlement anyone who put in £400 would get £60 back rather than the £16 previously estimated.
The settlement will be paid by the company's former directors, although they haven’t admitted liability and it’s not known which of the directors have contributed to the £4 million.
The company's administrators, BDO Stoy Hayward, said in a statement: "The action issued by the joint liquidators of Farepak Food and Gifts Limited against the directors of Farepak has been settled with no admission of liability by the directors. The terms of the settlement are confidential."
The bosses – including managing director Nick Gilodi-Johnson and chief executive William Rollason – were accused in court of carrying on trading when they knew Farepak was bust. No date has yet been set for the new settlement to be paid.
In theory, the ruling marks the end of the Farepak saga but Unfairpak, a campaign group set up after the hamper firm collapsed, says the matter is not closed.
Unfairpak founder Suzy Hall wrote in the group’s internet forum: "The liquidation committee, of which I form a part, will be meeting with the liquidators in order to decide what further steps shall now be taken following upon their investigation into Farepak's demise. This liquidation is by no means cut and dried and does not necessarily end here."
If you have been affected and haven’t yet made a claim, you can contact BDO Stoy Hayward by calling 0870 066 9826 or visiting the firm’s website. If you’re sending a claim by post it’s a good idea to send photocopies by recorded delivery and keep your original documents in a safe place.