Unfairpak Forum - How Farepak Stole Christmas

On Friday 13th Oct 2006 - Farepak Hampers went into administration. Over 100,000 customers were told that no food hampers or vouchers or other goods will be supplied this Christmas as promised, and no refunds! Share your thoughts here...
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PostPosted: Wed Jun 20, 2012 7:16 pm 
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Liberal Democrat Business Secretary Vince Cable has said he is "deeply disappointed" after a Government companies watchdog abandoned a bid to penalise directors of a Christmas hamper business which collapsed six years ago leaving tens of thousands of savers out of pocket.
The Insolvency Service said it was discontinuing High Court action against former bosses at Farepak - and its parent firm.
Mr Cable said he felt "huge" sympathy for "those who lost out" and would reflect on the decision by the Insolvency Service - which is part of his department.
A High Court judge began hearing evidence in May following the start of a trial in London.
Lawyers representing the Insolvency Service had asked Mr Justice Peter Smith to disqualify former bosses at Farepak - and its parent firm - from being company directors. Former bosses contested the disqualification applications.
The Insolvency Service announced the end of the litigation in a statement.
An Insolvency Service spokeswoman said: "The Insolvency Service, acting on behalf of the Secretary of State for Business, Innovation and Skills and on advice of counsel, will discontinue the proceedings against the directors of Farepak and European Home Retail plc. This decision is based on consideration of evidence given to the court to date."
Mr Cable added in a statement: "I am deeply disappointed by today's events and feel a huge amount of sympathy for those who lost out when the company went bankrupt.
"Without doubt, we need to reflect on this result, consider what options are on the table and seek further legal advice if needed."
Lawyers said Mr Justice Peter Smith would make a statement in court on Thursday.

THIS IS NO JOKE.

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PostPosted: Wed Jun 20, 2012 7:23 pm 
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http://www.telegraph.co.uk/finance/fina ... apses.html


In dramatic scenes in London’s High Court the case against directors including Sir Clive Thompson, former president of the CBI, was withdrawn by the Insolvency Service, part of Vince Cable’s Department for Business.
On Tuesday the court heard how the bank twice refused requests by Farepak’s directors to safeguard £4m of customers’ money by placing it in a trust.
The decision meant the cash was available to be repaid to HBOS, now part of Lloyds Banking Group, rather than being returned to customers when the business went under in October 2006. In highly embarrassing emails the court also heard how senior HBOS bankers referred to savers’ cash in Farepak as “Doris money”.
The phrase appears to be a reference to Farepak’s customer base. Shortly after the evidence from HBOS was presented the judge overseeing the case Mr Justice Smith told lawyers acting for the
Business Secretary to go away and “consider what had survived of their case”. After a delay in proceedings yesterday morning the case was dropped.

Mr Cable said he felt "huge" sympathy for "those who lost out" and would reflect on the decision by the Insolvency Service - which is part of his department.
The case has cost all the parties millions of pounds. The Department for Business is understood to have spent in excess of £1m on the legal proceedings. HBOS’s costs, which could yet be paid out of what little is left of Farepak’s creditor funds, are also in the region of £1m.
The case against the five Farepak directors flowed from a five-year investigation by the Insolvency Service into the £34m collapse of the savings company. Particular attention was drawn to the fact that over £1m in deposits was flowing into the company just weeks before it went under.
However, rather than gladly accepting the money it was revealed this week the directors had done their best to protect the cash, but been turned down by HBOS.
“That means that the bank [HBOS] is £4m plus better off during that period,” said Mr Justice Smith on Tuesday.

HBOS’s £31m loan to Farepak was repaid in full. Savers were offered just 15p in the £1.
It was also revealed that Peter Cummings, the former head of HBOS’s investment bank, had been the “ultimate arbiter” of what had happened with Farepak.
Mr Cummings is himself fighting being debarred from working in the City by the Financial Services Authority in relation to his work with HBOS.
Mr Justice Smith is expected to make a statement to court this morning. He said Farepak’s customers deserved to be told what had happened in the case. A ruling on Friday could lead to millions of pounds of costs being apportioned.

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PostPosted: Wed Jun 20, 2012 8:23 pm 
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This is devastating news for everyone who has seeked justice for all these six long years. How could this have ended like this, many questions will need to be answered to all the victims of this scandal. Once again the little people have been screwed again by the so called good and mightly of this world. Very very angry at this end. :shock: :shock: :evil: :evil: :evil:

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PostPosted: Wed Jun 20, 2012 8:41 pm 
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l am sitting here in tears...l am having a temper tantrum, the law is "indeed an ass" :(

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PostPosted: Wed Jun 20, 2012 8:53 pm 
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it feels like a slap in the face, again. If the judge states that we deserve to know the truth, then he better deliver. 5 year investigation for this? Going to have to lie down and take a tablet.

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