Five years after Christmas hamper firm Farepak collapsed, leaving around 120,000 customers nearly £40m out of pocket, the fees dealing with the administration have exceeded any potential compensation for its victims.
Farepak, which allowed people to spread the cost of Christmas food and presents, went bust on October 13, 2006, with customers losing an average of £400. Victims are expected to receive around £5.53m in compensation.
But administrator BDO confirmed the cost of the administration and liquidation to date, which includes its own fees as well as those of insurers and PR executives, stands at £8.2m.
Louise McDaid, from the Farepak Victims Committee, which has launched an online petition to demand the remaining £36.9m owed is repaid and those responsible are held to account, told reporters: “The Government has a responsibility to ensure that people's money is protected.”