BDO takes former Farepak ‘parties’ to court

Farepak liquidator, BDO Stoy Hayward, says it has ‘issued proceedings against a number of parties in an attempt to secure further monies for the benefit of creditors, including customers’ of the collapsed savings club Farepak.

However, the liquidator has refused to reveal any further information, so as not to prejudice the legal proceedings and jeopardise the success of the case and it is unclear whether ‘the number of parties’ include former directors like William Rollason, former chief executive, or Nick Gilodi-Johnson, former managing director, The Independent reports.

About 150,000 former Farepak customers have so far been offered only 5p for every pound they have lost through the club's regular savings plan, but no payments have been made by the liquidator because of the continued legal squabbling.

The BDO statement warned the delay to payments was now in the hands of the courts, and that 'it will not be possible to pay a dividend before the end of this year'.

Further reading:

Farepak investigation complete

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