On the 13th October, 2011 at 4.13pm it will be five years since the collapse of Farepak Food & Gifts Limited.
Tens of thousands of people had their savings stolen resulting in approx £38 million being owned to Farepak Victims.
What has happened since the collapse:
BDO Stoy Hayward - On the 13th October 2006 were appointed Joint Liquidators. The last accounts given in 2010 stated that payments made totalled £4,489.716.
Included in this total is £822,445 for Liquidator's Fees; £9,050 for taxation work and £1,450,384 for forensic work.
In April 2008 BDO initiated proceedings against the Directors to try to recover further monies that were owed to the Farepak Victims. A settlement with no admission of liability was reached with the Directors. An amount of £4 million (inclusive of costs) has been received by BDO. The terms of the settlement are confidential and the Liquidation Committee and the Joint Liquidators cannot say anthing else about this.
On 21st September 2009 cheques are sent out to 5,900 Farepak Victims who had payed monies into Farepak Food & Gifts Limited bank account after the 13th October, 2006. They are still owed monies payed in before the date of liquidation.
It is estimated that the Farepak Victims will receive 15p in the £ but BDO are unable to confirm when these payments will be made.
2011 Report to the Creditors is yet to be published.
The Directors - February 2011 the Government's Insolvency Service applied to the High Court to disqualify all nine former directors of Farepak and its parent company.
One of these Directors is Sir Clive Thompson who currently is Deputy Chairman of Strategic Equity Capital with £3,030,000 in Ordinary Shares.
If the High Court action is won and Thompson is disqualified (could take 2 years) the question is will he really be all that concerned? He has had 5 years to increase his vast wealth.
FAREPAK VICTIMS - December 2006 the Farepak Response Fund issues vouchers worth around 15p for every £ lost.
October 2011 116,413 Farepak Victims are still owed £36.9 million.
The unfairness of this situation is very apparent – When will there be justice for the Farepak Victims?
To continue the fight for justice the Farepak Victims Committee has lodged a Government e-petition which currently is being look at by HM Treasury.