Page last updated at 13:14 GMT, Sunday, 25 April 2010 14:14 UK

Farepak payout trebled to 15p per pound

Catalogue detail from Farepak website
Customers used Farepak to spread the cost of Christmas

Around 120,000 customers hit by the collapse of the Christmas hamper firm Farepak have been offered an estimated 15p for every pound they lost.

The amount is three times what they were expecting to receive, but at a total of around £4m ($6.2m) it is well below the £38m they hoped for.

Farepak ran a savings scheme which helped people to spread the cost of Christmas provisions across the year.

The business failed in 2006, leaving savers with an average loss of £400.

Some had put £2,000 into the Swindon-based company.

The settlement will be paid by the company's former directors, who have not admitted liability.

The company's administrators, BDO Stoy Hayward, said in a statement: "The action issued by the joint liquidators of Farepak Food and Gifts Limited against the directors of Farepak has been settled with no admission of liability by the directors... The terms of the settlement are confidential."

No date has yet been set for the new settlement to be paid.

Some customers have already received money from Farepak's administrators, after taking legal action.

Bev Carter, a former Farepak customer who lost £300, was taken aback by the news. She said: "I wasn't expecting to get any more money out of them - as little as it is, it is still not enough."

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