The Scottish National Party’s Mr Pete Wishart, Member of Parliament for Perth & North Perthshire, has commented on news today (Tuesday) that customers and agents of Farepak, the Christmas savings firm, will ultimately receive half of the money they lost when the company collapsed – after liquidators BDO said that final payments will be made to those who lost out at the end of August.
Mr Wishart, who has campaigned on behalf of constituents who have been victims of the collapse to secure compensation, said:
“Farepak collapsed in October 2006 owing £37m to more than 119,000 savers and I was contacted by a lot of constituents who had ben affected.
“While savers are to recover just half of their money back the final bill for the administrators and their legal advisers has already exceeded £8 million. It is understood that the UK Government will also meet the costs of the company directors who have been cleared - costs estimated as much as £6million.
“After a six year wait it is shameful that customers and agents will only receive half their money back while administrators pocket millions and taxpayers pick up the tab for the company directors’ legal costs.
“There is something seriously wrong when liquidations can take years to finalise. Sadly, over 200 of those waiting for compensation have actually passed away while waiting for the insolvency gravy train to come to a halt.
“It should be stressed that Farepak’s liquidator has confirmed that dividends will be paid to the next of kin or, where applicable, the estate of the agent or customer.
“Also, Creditors who have changed their address since submitting their original claim but have not notified the Claims Management Team should register their change of address by sending details of their name, their agent’s number, the amount of their claim, their old address, their new address and their signature to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ within two weeks.
“Having waited for so long, I would hate to see anyone missing out on getting back at least some of what they are due.”