Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Farepak boss says sorry. By Dan Martin

by
13th Nov 2006
Save content
Have you found this content useful? Use the button above to save it to your profile.

The boss of failed Christmas savings business Farepak has apologised to the thousands of customers who lost money as a result of the firm's collapse.

Breaking his silence since the company went into administration last month, managing director Nick Gilodi-Johnson said he felt "gutted" and "devastated" for the 150,000 people affected.

In a statement, he apologised to customers but blamed Halifax Bank of Scotland (HBOS) for the collapse following its decision to not extend Farepak's overdraft.

"What has happened to Farepak and its customers is nothing short of a tragedy", he said. "The business I ran was healthy and solid, but I am afraid that European Home Retail (EHR) - the overall group which owned it - was not so fortunate and despite our efforts to resolve the situation, it was ultimately forced into receivership after HBOS terminated its long-standing credit facility.

"I honestly thought there was a workable solution which would have safeguarded all our customers' money, but the bank did not agree. I feel its loss with immense sadness as it was a business my father founded and devoted his life to building and strengthening."

Gilodi-Johnson's attack on HBOS followed similar comments by EHR chairman Sir Clive Thompson who claimed HBOS rejected five rescue packages for Farepak last year.

"I have sat on the board of six FTSE 100 companies, but never have I seen such behaviour as this," he told the 'Daily Telegraph'. "If this is typical of the way HBOS treats small companies I am disgusted."

The collapse of Swindon-based Farepak has received national media coverage with consumer affairs minister Ian McCartney calling it a "national emergency".

A government-backed charity fund was set up last week to provide grants to those savers who have been left out of pocket to the tune of £50m.

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.