Trial against Farepak directors collapses
A trial against the directors behind the £42m failure of the Farepak Christmas hamper business collapsed last week at the High Court after the Insolvency Service (IS) withdrew its action. Farepak’s seven directors had faced a 15-year ban from company directorships. The company went into liquidation in 2006 just weeks before families were due to receive the Christmas hampers and vouchers they had paid for during the course of the year.
Mr Justice Smith, said the case collapsed because “the witnesses, properly tested on their affidavits, revealed what they actually felt, namely that they had no complaints about the defendants”, and that the directors did everything they could to save the business.
Richard Highley, partner, DAC Beachcroft, who acted for the former CEO and CFO of the company, said: “We are pleased for our clients while regretting that Farepak customers have still not been compensated.”
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