Press Release
27th October 2006

McNeil Backs Bid to Help Farepak Customers
MSP for Greenock and Inverclyde, Duncan McNeil, has welcomed the intervention of the Deputy Enterprise Minister, Allan Wilson, in the Farepak Food & Gifts (FFG) collapse, which has left thousands of customers without the Christmas hampers and presents for which they had saved.

Mr Wilson has already met with the British Retail Consortium / Scottish Retail Consortium (BRC/SRC) to discuss specific concerns relating to Scottish customers.  The Minister will also be writing to Ian McCartney, Westminster Minister of State for Trade, Investment and Foreign Affairs, to get a clear picture on how Scotland is affected by this and what steps are being taken to support customers and agents.

Mr McNeil said:

“It’s heart-breaking that people on tight family budgets, who were saving to make the cost of Christmas more manageable, have been cruelly failed by this company.

“I am reassured that the Deputy Enterprise Minister has now stepped in and is working to get a clearer picture of the total number of people affected and what steps are being taken to support customers and agents.

The administrators have put useful information for customers and agents on the Farepak website at: http://www.farepak.co.uk/

Customers who have lost out should follow the advice of the administrators and send notice of any claim they may have, by one of the following methods:  

ENDS

Notes
1.  Shagun Dubey and Martha Thompson, Business Restructuring partners at BDO Stoy Hayward LLP, were appointed as Joint Administrators on Friday 13th October 2006, over FFG. 

2.  Amongst other activities, FFG operated a Christmas voucher and hamper club.  People contributed to the club on a regular basis throughout the year and would normally expect to receive their vouchers at this time and hampers towards the end of the year.  Roughly 80% of the business was voucher based.

3.  The Administrator’s current estimate of customers’ money paid in by the agents so far this year is £41m, but the total loss figure will be higher because of commission due to the agents.

4. The BRC is considering with its members this week the practicality of making some form of goodwill gesture to Farepak customers. 

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