Farepak administrators set to make much more than savers
Remember Farepak? The Christmas savings club that went belly-up just ahead of the festive season in 2006? The name probably still sends a chill down your spine if you were one of the 120,000 savers who lost an average of £400 each when it collapsed.
You probably still haven’t received anything back yet either – the legal shenanigans have been rumbling on for five years now and the latest offer to savers was for 15p in the pound - £5.7m of the £38m that is owed to them.
Rather than being a Farepak saver, you should probably have become a lawyer, administrator, insurer or media relation executive involved in the administration and liquidation of the company. That lot have earned themselves fees totalling £8.2m throughout the whole fiasco. Good work lads and lasses!
Farepak was a Christmas savings club in whicih savers made monthly deposits in return for vouchers which they received before Christmas. Its owner, European Home Retail, used savers’ money to fund the day-to-day running of the business, leading to the collapse in 2006.