The insolvency industry is under attack for “raking in a fortune at the
expense of creditors” amidst protests that “accountants and lawyers” have
secured £3m from the collapsed Farepak Christmas hamper firm while former
customers can expect to receive only 5p in the pound
The accusation was made by Scottish National Party business spokesman Mike
Weir amidst claims that half the money recovered has gone to those winding up
He said: “It is the final insult that, after three years, the Farepak victims
have been left with pennies while the administrators have made millions.
“Farepak victims have already seen the bankers that shut them down walk away
with their bonuses and benefits packages.
“Now they are seeing the organisation supposed to recover the money taking
more than it is giving.”
The Angus MP added: “I hope this situation can be resolved and Farepak
victims will finally receive a decent compensation package.”
BDO defended the firm’s fees in realtion to Farepak, claiming “all our fees
and actions taken have been approved by the Creditors’ Liquidation Committee,
which represents all those who lost money as a result of the collapse of Farepak
The firm added that it had “written off £100,000 of fees generated by time
spent assisting the Farepak Response Fund and the Minister for Trade, Investment
and Foreign Affairs”.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies