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Christmas gift after Farepak loss Christmas gift after Farepak loss
(10 minutes later)
Thousands of families affected by the collapse of the Farepak hamper firm may see some light at the end of the tunnel after a gesture from Sainsbury's.Thousands of families affected by the collapse of the Farepak hamper firm may see some light at the end of the tunnel after a gesture from Sainsbury's.
Swindon-based Farepak ran a savings scheme for 150,000 people for vouchers and Christmas hamper, but collapsed in October without offering compensation.Swindon-based Farepak ran a savings scheme for 150,000 people for vouchers and Christmas hamper, but collapsed in October without offering compensation.
Now Sainsbury's has agreed that Farepak customers can get 25% of the value of their savings in Sainsbury's vouchers.Now Sainsbury's has agreed that Farepak customers can get 25% of the value of their savings in Sainsbury's vouchers.
Farepak is also being discussed in the House of Commons on Tuesday.Farepak is also being discussed in the House of Commons on Tuesday.
Angry MPs
Speaking in the Commons, Labour MP for Birkenhead, Frank Field, attacked the role of HBOS in the collapse of Farepak.Speaking in the Commons, Labour MP for Birkenhead, Frank Field, attacked the role of HBOS in the collapse of Farepak.
HBOS was Farepak's banker and Mr Field said it should bear a heavy responsibility for the misery caused.HBOS was Farepak's banker and Mr Field said it should bear a heavy responsibility for the misery caused.
Meanwhile Labour MP for Swindon South, Anne Snelgrove, said in the Commons that her three "Christmas scrooges for 2006" would be HBOS, hamper trade industry body HITA, and the British Retail Consortium (BRC).
She said the BRC's action in initially saying it could help those who lost money, but then coming back and saying there was nothing it could do, was "cruel".
The BRC had said this was because Farepak's customer database was too complicated.
'Goodwill gesture''Goodwill gesture'
Sainsbury's has become the first major retailer to give some help to Farepak members, offering vouchers to be spent in its stores.Sainsbury's has become the first major retailer to give some help to Farepak members, offering vouchers to be spent in its stores.
The supermarket said it would need the help of Farepak agents, who hold customer details, to ensure its plan was a success. Sainsbury's hopes to despatch the vouchers by the beginning of December.The supermarket said it would need the help of Farepak agents, who hold customer details, to ensure its plan was a success. Sainsbury's hopes to despatch the vouchers by the beginning of December.
It said: "While Sainsbury's has no involvement with Farepak and its operation, we now know that many of Farepak's customers had planned to use their savings to buy Sainsbury's vouchers.It said: "While Sainsbury's has no involvement with Farepak and its operation, we now know that many of Farepak's customers had planned to use their savings to buy Sainsbury's vouchers.
"We hope that through this goodwill gesture, we have been able to give these customers that opportunity and we have gone some way to mitigating this difficult situation.""We hope that through this goodwill gesture, we have been able to give these customers that opportunity and we have gone some way to mitigating this difficult situation."
The Department of Trade and Industry has launched an investigation into what happened at the company.The Department of Trade and Industry has launched an investigation into what happened at the company.
Administrators said that no orders will be fulfilled after the company was taken into administration on 13 October.Administrators said that no orders will be fulfilled after the company was taken into administration on 13 October.
Some of those affected are understood to have lost thousands of pounds they had saved in vouchers ready to spend at Christmas.Some of those affected are understood to have lost thousands of pounds they had saved in vouchers ready to spend at Christmas.