UK: Farepak collapse 'bad for British business'

The collapse of the Christmas savings club Farepak has had an impact on the image of British business, the leader of the CBI said today.

Director general Richard Lambert said the saga was a “depressing and sad” story, especially as it had affected so many people.

Around 150,000 Farepak customers in the UK each lost an average of £400 (€590) when the company went into administration last month.

Mr Lambert questioned how the company continued to take money from customers for “some period” after it got into financial difficulty.

“I regret the way it has impacted on business,” he said.

Clive Thompson, chairman of Farepak’s parent company, is a former president of the CBI.

An investigation into the collapse of the savings club has been launched by the Department of Trade and Industry.