The Insolvency
service have abandoned the high court case to take Farepak’s former bosses
banned from being company directors.
Farepak, the
monthly money saving company, collapsed in 2006 leaving around 116,000 customer
out of pocket.
Last month, the
insolvency service had taken the case to court to attempt to get the former
directors banned from being appointed as company directors in the future.
The Swindon based
firm collected money from it’s customers every month, with a view to them being
able to purchase food hampers or high street vouchers in time for Christmas.
After one of
Farepaks rivals went into administration, suppliers demanded upfront payments
rather than the previously agreed credit arrangements, something Farepak were
not able to provide. The firm had also built up debts from previous unsuccessful acquisitions.
The former
directors named in the High Court case were Stevan Fowler, Neil Gillis,
Nicholas Gilodi-Johnson, Stephen Hicks, Michael Johns, Paul Munn, Joanne
Ponting, William Rollason and Sir Clive Thompson.
Lawyers for the
Insolvency Service said that Farepak had traded at "unreasonable
risk".
Lawyers for the former directors, named as Stevan Fowler,
neil Gillis, Nicholas Gioldi-Johnson, Stephen Hicks, Michael Johns, Paul Munn,
Joanne Ponting, William Rollason and Sir Clive Thompson, however, said that the
Insolvency Services evidence “singulary failed’ to establish a case for their
disqualification.
