Misery after hamper firm shuts

They will not get a full refund, which may mean a loss of hundreds of pounds in some cases.

The Swindon-based firm has about 170,000 UK customers, many of whom are low-income families who found its weekly saving scheme a good way to manage their money.

The firm went into administration on Friday and shut.

The total collected from UK cusis believed to be about £68million which would be redeemed this month either in shopping vouchers or food hampers.

One of its Black Country agents said today he was "devastated" at having to break the news.

Just before the firm went into administration, its website boasted 110 different hampers, 1,000 gifts and choice of shopping vouchers.

It said:"Farepak has grown to be one of the largest, and the most safe and reliable, Christmas savings schemes in the country. Tens of thousands of customers enjoy Farepak's excellent range of hampers, gifts and shopping vouchers each year."

The website has now been cleared and features advice and information for customers and agents affected by the closure.Angry customers have jammed firm phone line to be met with a message from its administrators warning them they could lose out.

Farepak agent Christopher Loach, of Walsall, has had 12 years with the firm and said he had collected thousands of pounds.

"My customers have been paying me all year and I was told a couple of weeks ago that everyone would get a full refund but now I fear everyone is going to lose everything. Me and my wife are absolutely devastated."

Uttoxeter mother and daughter Mavis and Louise Williams said they had paid in about £1,200 between them.

Mavis said: "They must have known and shouldn't have been accepting money off people as recently as they were."

They used the scheme to give Louise's two young children a decent Christmas they said.

Agents also reported the 37-year-old firm, part of European Home Retail and once worth £10million, was taking money two days before the shock announcement.

Administrators BDO Stoy Hayward says: "The company is unable to deliver any orders for hampers, vouchers or gifts. At the present time, I can advise that you may receive back some money, but not all, and this will not be for many months."

Advice for customers:

* Do not send any more money to the company* Keep all your original documents safe

* Lodge a claim with the company by writing to Kings Wharf, 20-30 Kings Road, Reading, Berkshire, RG1 3EX. Emails can be sent to customer.claims@farepak.co.uk or faxes to 01793 606012

* You may receive some money back but not all and claims may take months

* Cancel any direct debits with the bank

* Log on to www.farepak.co.uk for regular updates

* No money should change hands between agents and customers and any money still held by the agent should be returned

* Vouchers, other than Choice vouchers, which you hold will be valid and can still be used

By Lee Perry

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