FAREPAK where did the money go?

Question

farepak have traded for some time ok
so what reason is there for it to go under now
where was the money for peoples goods spent
what were the firms accountants doing?
who were they?
what were the management doing?
what were the banks doing?
someone has received that money,
WHO is what needs to be found out
there should be a new laws to bring companies like this to account
there needs to be a very good look at their books to see what has happened and why

Answer 1

Because they had declared themselves bankrupt, the bank got the money.

Answer 2

Any company can take deposits for goods and then let their customers down by using that money in their business instead of keeping it safe. Thats why its never safe to pay into a shop savings scheme. Even Tesco etc take weekly savers money, in the unlikely event of a shop going bust, that money is lost. Remember Courts Furniture!
The irony is that there is excellent protection and regualtion of all credit unions and banks by the FSA
So anyone wanting to save up for xmas or whatever, should only use an FSA regulated credit union, or bank or building society.
Don't use a pub savers club, or works fund, or any social clubs own savers group. they are just as unsafe
The easy solution is for all such savers groups to go into the protection of a credit union. In most cases the same people can carry on collecting the money in the same place, but they would pay the money into the credit union, would be fully insured and covered by the Financial Services Compensation Scheme even as a volunteer collecting in a pub!

Answer 3

The money was taken by the parent company and used to finance other companies under the umbrella. Directors etc got lovely huge dividends as the other companies were doing well.

Once the banks saw wht was happening, they decided enough was enough and called in the overdraft. The parent company DID & DOES have enough money to cover this but the owners, rather than be out of pocket decided to let it fold.

Fat cats means biggers a.seholes.

Answer 4

Apparently a large portion of the money was taken by the higher management team, directors etc as a sort of pay off. Not sure how true it is though, although I wouldn't be at all surprised!

Answer 5

Luncheon Vouchers

Answer 6

I'm sure i heard a statement by the MD (might have been some other position high up tho) who said he blamed the bank for cancelling their overdraft so it sounds like they were overdrawn heavily as it was.

Answer 7

I understood it was unsuccessfully used to try and prop up failing parts of the business.

Answer 8

i really don't know but its a dam shame people rely on this company now they have very little or no compensation