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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 Post subject: EHR Overview
PostPosted: Fri Mar 02, 2012 6:06 pm 
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http://wn.com/European_Home_Retail_Farepak_collapse


This is a Overview of the collapse of EHR thought it may be useful.


European Home Retail plc (EHR) was a listed UK company, operating in home retail. Though registered in Swindon, Wiltshire, its head office was based in Warmley, Bristol. On 13 October 2006, it was announced EHR and its subsidiary Farepak had gone into administration.
History

The origins of Farepak Hampers date back to 1935. In 1969, Bob Johnson was appointed managing director of the small Christmas savings club with 500 agents operating from a butcher's shop in Peckham.
In 1995 Farepak purchased the older Kleeneze Homecare business from Arcadia Group plc, and changed its name to ''Kleeneze plc'', hiving off its original business to a subsidiary ''Farepak Food and Gifts Ltd''. By 2006 ''Kleeneze plc'' changed its name once more to ''European Home Retail plc''. Kleeneze is a multi-level marketing company, which was formed in 1923.

Farepak collapse

After a series of profit warnings starting in June 2006, Farepak ceased trading on 13 October 2006, leaving tens of thousands of people out of pocket for Christmas 2006. EHR itself went into administration later that day. The administrators explained that Farepak's collapse was triggered by the fact £33m it lent to its parent company EHR was not paid back.
In due course the liquidators will establish whether the money collected by Farepak from shoppers saving for Christmas was (or should have been) held in trust for the savers, or whether the savings were general funds available to Farepak and its parent company to be used in discharge of bank loans. The liquidators will also establish whether EHR was already insolvent at the time it removed savers' funds from Farepak.

A fund was set up to help families affected by the Farepak closure. Donations have been made by companies including Tesco, BSkyB, Sainsbury's and Marks and Spencer. HBOS also made a donation, raising criticism that it could have given much more help by extending EHR's debt. The fund was officially closed on 29 November 2006. In December 2006, Myleene Klass used eBay to auction off the bikini which she wore during her appearance on TV show ''I'm a Celebrity... Get Me Out of Here!'', raising £7,000 for the Farepak victims.

As a knock-on effect Amtrak, the group's main delivery agent, went into administration early in 2007.

Farepak moved from administration to liquidation on 4 October 2007.

The insolvancy service has applied for disqualification of the directors

Board of directors

Chairman: Sir Clive Thompson (formerly of Rentokil)
William Rollason - Chief Executive Officer (CEO)
Stevan Fowler - Finance Director and Company Secretary (appointed 1 January 2006)
Nicholas Gilodi-Johnson - Non-Executive Director
Neil Gillis - Independent Non-executive Director
Paul Munn - Independent Non-executive Director
Michael Johns - Independent Non-executive Director appointed 28 September 2005)
Nicholas Gilodi-Johnson was appointed after the death of his father Bob Johnson.
Subsidiary companies

EHR was the parent company for a number of well-known subsidiary companies, namely:
Kleeneze Europe

Kleeneze was sold on 13 October 2006 to Findel plc.
eeZee TV

In March 2005, EHR formed the joint venture satellite TV station eeZee TV, a 50/50 joint venture with JML Direct, broadcasting on Sky digital channel 657.
Farepak Food & Gifts Limited

Farepak had been operating since 1981 at a site in Swindon, Wiltshire, England. Its own annual turnover of £70m (2004), was mainly generated from its core business in Christmas hampers. In addition, Farepak sold High Street (and other) Gift Vouchers and also supplied gifts, including electricals. Unlike many of the other subsidiary companies, Farepak was not sold to the Findel group. There was a five hour protest outside the company's gates on 17 October 2006.
I Want One Of Those.com

Gifts and gadgets website. Now sold to the Findel group..
Kitbag.com

Europe’s largest online sports retailer. Now sold to the Findel group..
Stock Market

"European Home Retail" was listed on the stock exchange under ticker code EHR.L. 2005 group turnover was £176.2m.

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 Post subject: Re: EHR Overview
PostPosted: Sat Mar 03, 2012 11:54 am 
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Thanks David :)

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 Post subject: Re: EHR Overview
PostPosted: Sun Mar 04, 2012 5:53 pm 
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Yep Thanks David x

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 Post subject: Re: EHR Overview
PostPosted: Tue Jun 26, 2012 4:48 pm 
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still poking away, what caught my eye was the payout ttm figure as compared to industry average. it is the amount of earnings/profits paid as dividends.

http://www.reuters.com/finance/stocks/f ... mbol=EHR.L

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