Farepak

Sandra Osborne, MP for Ayr, Carrick and Cumnock Constituency has voiced her concern at the news that Farepak Food and Gifts Ltd has went into liquidation just weeks before the money was due to be paid out.

Sandra said:
‘I am extremely concerned at the effect this will have on many of my constituents who have paid into the scheme.  Many people rely in these types of savings schemes to help them manage through the festive season. I am aware that the Minister for Trade met with administrators yesterday and requested that they report back to him as soon as possible with any views on the fitness of the directors to run a limited company as well as on their responsibility for failure to supply goods that have been paid for.  The Minister will also meet with members of the board of the Hamper Industry Trade Association shortly to discuss why Farepak did not offer any protection for people who paid money upfront.  He will also be pressing for the small number of companies in this industry to take precautions to ensure that a situation like this does not happen again.

I believe that the Minister is also discussing with members of the British Retail Consortium the possibility of putting together a package for the families who have had their Christmas plans shattered.  While members of the BRC have no legal obligation to these families its membership contains many nationally and internationally successful and highly responsible companies who may be able to make a gesture which helps out affected families this Christmas.

I have supported a motion in the House of Commons calling for the matter to be referred to the Trade and Industry Select Committee and I have also contacted the Minister for Trade raising the concerns of my constituents.

I am disappointed at the way in which the company appeared to have handled the whole situation as I understand that many people were only aware of the matter after it was highlighted in newspapers.’