Taxpayers may have to foot bill for Farepak collapse
Thursday 21 June 2012
Taxpayers may have to foot millions of pounds in legal bills following the abandonment of a Government bid to penalise directors of a Christmas hamper business which collapsed six years ago leaving tens of thousands of savers out of pocket, a businessman involved said today.
A Government companies watchdog has discontinued High Court action against former bosses at Farepak and its parent firm.
The Insolvency Service, which is part of the department headed by Liberal Democrat Business Secretary Vince Cable, wanted former bosses at Farepak, and its parent firm, disqualified from being company directors. Former bosses contested disqualification applications.
Lawyers representing the Insolvency Service called a halt after "consideration of evidence" given at a High Court trial which started in London nearly a month ago.
A High Court judge overseeing the case today said lawyers representing the Insolvency Service had been right to conclude that there was "no prospect of success".
Mr Justice Peter Smith said what had been missing from evidence was "any justified complaint" against former Farepak bosses. He added: "They did everything, so far as I can see, possible to save the group."
After the hearing Sir Clive Thompson, a former president of the Confederation of British Industry and ex-chief executive of Rentokil - and one of the former Farepak bosses targeted, said he was "extremely surprised" that Mr Cable had launched the action.
He estimated that the litigation would cost £20 million in total and said he and other former Farepak bosses would be asking the court to order Mr Cable's department to foot the entire bill.
- 2 The black and blue dress: Makers considering a white and gold version
- 3 This is what it's like to be dead, according to a guy who died for a bit
- 4 PornHub turns masturbation into energy in bid to save the planet
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
£9 per hour: Recruitment Genius: This role is based within a small family run ...
£28000 - £32000 per annum: Recruitment Genius: This Design and marketing agenc...
£46000 per annum: Recruitment Genius: This property investment firm are lookin...
£18000 - £35000 per annum: Recruitment Genius: This company specialises provid...