Farepak legal action threat

FAREPAK chiefs face the threat of legal action after the government passed a file on the Christmas hamper business's collapse to prosecutors.

Ministers are seeking legal advice on whether there is enough evidence to prosecute anyone after the company went bust, taking the savings of many low-income families with it.

In a separate move, the liquidators of Farepak said they were taking legal action against the firm's former directors.

In a statement BDO Stoy Hayward said: "The Farepak Liquidation Committee has sanctioned the liquidators' recommendation to issue proceedings against a number of parties, in an attempt to secure further monies for the benefit of creditors which includes customers and agents.

"The liquidators have now issued proceedings. From this point onwards the length of time this takes to resolve is in the hands of the courts."