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Farepak

Volume 688: debated on Monday 22 January 2007

My right honourable friend the Minister of State (Ian McCartney) has made the following Written Ministerial Statement.

When the House debated the collapse of Farepak on 7 November 2006 (col. 206WH), I undertook to keep honourable Members fully up to date on the progress of the investigations into the events. Honourable Members will wish to be aware that on 18 January the administrators of Farepak Food and Gifts Ltd, BDO Stoy Hayward, sent out its statement to customers and agents of Farepak. The statement explains what has happened in the administration to date, what the administrators propose to do while they are still appointed and what will happen when the administration ends.

The main purpose of the statement is for agents and customers to have the opportunity to consider and vote on the proposals of the administrators. The administrators recommend that Farepak should be placed in liquidation. Liquidators have wider powers of investigation and action than administrators. Creditors will have until 9 February 2007 to return voting forms to Voting Registration Department, Farepak House, Westmead Drive, Westlea, Swindon SN5 7YZ.

I am placing a copy of the statement in the Libraries of both Houses.

The DTI’s Companies Investigation Branch is continuing its wider investigation into the circumstances surrounding the collapse of Farepak.