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Victims fight for House of Commons debate on Farepak, five years after its collapse
The victims of the Farepak scandal want to force a debate in the House of Commons five years after the collapse of the hamper company, as it emerges more than 120,000 are still collectively out of pocket to the tune of £36.9m. The firm operated a savings scheme which allowed people to spread the cost of Christmas food and presents over the year...Read more here---> Victims fight for House of Commons debate on Farepak, five years after its collapse | This is MoneyYou must be logged in to post a comment.
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Banking Group has donated an extra £8m to the Farepak compensation fund. The move comes in response to demands from a High Court judge last month who partially blamed the bank's "hardball" attitude for the collapse of the Christmas savings firm in 2006. The extra money will go to 116,000 who lost £37m between them. Lloyds said it was making the payments to acknowledge its "wider responsibilities"....Read more HERE
he auditors of failed Christmas savings firm Farepak face disciplinary action following an investigation. The Financial Reporting Council (FRC) alleged that Ernst and Young and its auditor Alan Flitcroft fell short of the standards expected. In particular, one allegation was that they failed to consider Farepak's ability to continue as a going concern. It collapsed in October 2006. Ernst and Young said it took the matter "extremely seriously". Mr Flitcroft was the audit partner, and therefore had responsibility for signing off the audit.
Alleged failings
Swindon-based Farepak collapsed, leaving 114,000 people with total losses of £37m. There was no money available to creditors.....Read more on this story here: BBC News - Farepak auditors face disciplinary action
Opponents of so called 'pre-pack’ administrations have been boosted by the launch of an independent review which could see creditors finally given a grace period to challenge the controversial deals. The Government has commissioned a probe of administrations which allow firms that are about to collapse to be restructured and sold to new owners – typically the existing management – without the consultation of unsecured creditors. The Insolvency Service, the industry regulator, admitted that the review could revive a plan to give connected parties three days notice ahead of a pre-pack.....Read more here