Saturday, November 11, 2006

Farepak chairman paid himself huge dividend just weeks before firm's collapse

The family behind the doomed Farepak hamper firm was paid £7million in dividends as the company headed for disaster, the Daily Mail can reveal.

Read more... • Farepak grandmother-of-57 fears family Christmas ruined

Farepak managing director Nicholas Gilodi-Johnson and his family, who together own 65 per cent of parent company EHR, have so far refused to contribute anything towards an emergency fund for Farepak customers, despite a family fortune estimated at £15m.

More than 100,000 low-income families are facing a dismal Christmas after losing a total of £40million they had saved through Farepak to pay for hampers and Christmas presents.

The firm had continued taking their monthly payments despite shares in EHR being suspended in August, and its directors have been described in parliament as 'immoral'.

Farepak's collapse has been blamed on EHR's disastrous £35m purchase of book firm DMG in 2000, using borrowed money which it has never been able to pay back.

NWN: Under nationalism this stuff would not happen. These capitalists would have the full force of the law thrown at them. In this case jail would be an option, and probably even worse. Once again we see a non-British name involved in crime. A huge move of cash, and a possible threat of the birch would sort this decadent 'riff raff' out.

Class must be removed, as well as corruption.


NorthWestNationalists said...

This Limited Company business stuff needs to be scrapped forthwith. We saw it even from the South Sea Bubble problems.

dizzyfatplonka said...

So this is the scumbag who has ran off with all the poor childrens christmas money, no better than a christmas eve burglar worse in fact since he has done over many homes in one foul swoop!

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