Legal action is under way in the High Court to strike off directors of the failed Christmas hamper business Farepak and its parent company.

The government's Insolvency Service said it had applied to the court to disqualify all nine former directors of Farepak, including former CBI boss Sir Clive Thompson.

All are fighting the action.

Farepak imploded in 2006 leaving the average customer £400 out of pocket. It had over 100,000 customers who signed up to spread the cost of Christmas across the year.

The Insolvency Service said that the application to the High Court was made in the public interest.

Around 3,000 people in Northern Ireland were hit by the collapse of the firm.

Londonderry mum Claire Street, who was an agent for the savings scheme, handed out almost £2,500 to her customers from her own pocket after the firm went bust.