European Home Retail
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European Home Retail plc is a large UK company. Though registered in Swindon, Wiltshire, its operations are based in Warmley, Bristol. On 13 October 2006, it was announced that its subsidiary Farepak had gone into administration. [1]
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[edit] History
The origins of Farepak Hampers date back to 1935. In 1969, Bob Johnson was appointed managing director of the small Christmas savings club with 500 agents operating from a butcher shop in Peckham.
In 1995 Farepak purchased Kleeneze Homecare (now Kleeneze UK). When Farepak changed its name to Kleeneze plc it extracted its original core business to its subsidiary Farepak Food and Gifts Ltd. By 2006 Kleeneze plc changed its name to the current European Home Retail plc.
[edit] Farepak collapse
After a series of profit warnings starting in June 2006, Farepak ceased trading on 13 October, leaving tens of thousands of people out of pocket for Christmas 2006. EHR itself went into administration later that day.[2]The administrators explained that Farepak's collapse was triggered by the fact £33m it lent to its parent company European Home Retail (EHR) was not paid back.
In due course the liquidators will establish whether the money collected by Farepak from shoppers saving for Christmas was, (or should have been), held in trust for the savers, or whether the savings were general funds available to Farepak and its parent company to be used in discharge of bank loans. The liquidators will also establish whether EHR was already insolvent at the time it removed savers' funds from Farepak.
A fund has been set up to help families affected by the Farepak closure [4]. Donations have been made by companies including Tesco, BSkyB, Sainsbury's and Marks and Spencer. HBOS also made a donation, raising criticism that it could have given much more help by extending EHR's debt [3][4]. The fund was officially closed on 29th November 2006. In December, Myleene Klass used eBay to auction off the bikini which she wore during her appearance on TV show I'm a Celebrity... Get Me Out of Here!, raising £7000 for the Farepak victims[5]. As a knockon effect Amtrak, the groups main delivery agent, went into administration early 2007[6].
[edit] Board of Directors
- Chairman: Sir Clive Thompson (formerly of Rentokil)
- William Rollason Chief Executive Officer (CEO)
- Stevan Fowler Finance Director and Company Secretary (appointed 1st January 2006)
- Nicholas Gilodi-Johnson Non-Executive Director[7]
- Neil Gillis Independent Non-executive Director
- Paul Munn Independent Non-executive Director
- Michael Johns Independent Non-executive Director appointed 28th September 2005)
Nicholas Gilodi-Johnson was appointed after the death of his father Bob Johnson[8]
[edit] Subsidiary companies
It is the parent company for a number of well known subsidiary companies, namely:
[edit] Kleeneze Europe
Kleeneze Europe is a multi-level marketing company, and was started in 1923, Kleeneze was bought on October 13, 2006 by Findel plc[9]
[edit] eeZee TV
In March 2005, EHR formed the joint venture satellite TV station eeZee TV, a 50/50 joint venture with JML Direct, broadcasting on Sky digital channel 657.
[edit] Farepak Food & Gifts Limited
Farepak had been operating since 1981 at a site in Swindon, Wiltshire, England. Its own annual turnover of £70m (2004), mainly generated from its core business in Christmas hampers. In addition, Farepak sell High Street Gift Vouchers and also supply gifts, including electricals. Unlike many of the other subsidiary companies, Farepak was not sold to the Findel group and was subsequently put into administration on 13 October 2006 [1]. There was a five hour protest outside the company's gates on 17 October 2006[10]
[edit] I Want One Of Those.com
Gifts and gadgets website. Now sold to the Findel group[9].
[edit] Kitbag.com
Europe’s largest online sports retailer. Now sold to the Findel group[9].
[edit] Stock Market
When "European Home Retail" was found on the stock exchange; code EHR.L. 2005 group turnover was £176,191,000 GBP.
[edit] References
- ^ a b BBC
- ^ timesonline - Prufrock: Mr 20% faces bleak ChristmasLife Style Extra - European Home Retail calls in receivers
- ^ BBC NEWS | Business | Farepak families fund is launched
- ^ BBC NEWS | Business | HBOS to give £2m to Farepak fund
- ^ [1][2][3]
- ^ Amtrak Express Parcels Looks to a Bright Future Under New Ownership - 17.Jan.2007 prnewswire.co.uk
- ^ Appointed to the Board in September 2001, Nicholas Piers Gilodi Johnson was appointed Managing Director of Farepak Food and Gifts Ltd in February 2005. He was previously Corporate Strategy Manager with United Pan Europe Communications NV and, prior to that, was with News International PLC.as retrieved on 8 Sep 2006 09:43:12 GMT.
- ^ Who are the Farepak directors? - Swindon Advertiser 18.10.2006
- ^ a b c Life Style Extra - Findel picks up 34 mln stg of assets from European Home Retail receiver Retail Week - Findel pounces on EHR assets
- ^ [this is wiltshire - Emotions boil over at Farepak protest - 18.10.2006]
[edit] See also
- Administrative receivership
- Bankruptcy
- Corporate scandal
- Creditor
- Department of Trade and Industry
- Liquidation
- Ring fence
[edit] External links
[edit] General
- European Home Retail Corporate website
- Kleeneze company website
- Farepak Web site
- Direct Selling Association
- Carmarthenshire County Council -Farepak Hampers
- Unfairpak Forum - How Farepak Stole Christmas
- Western Daily Press - Fair Play for the Farepak Families - the Western Daily Press Farepak Christmas Appeal
[edit] News
[edit] BBC
- BBC News - Farepak families fund is launched - 07/11/06
- BBC Oxford - Factsheets: Trading Standards info on Farepak - 17/10/06
- BBC News - New bid to help Farepak families - 19/10/06
- BBC News - MPs call for FTSE Farepak pledge - 23/11/06
- BBC News - Farepak response fund due to shut - 29/11/06
- BBC News - Hampers for some Farepak victims - 07/12/06
[edit] Swindon Advertiser
- Swindon Advertiser: Farepak Fiasco special section - contains numerous articles
- Swindon Advertiser: Farepak victims' plight is taken up by Government - 20/10/06
- Swindon Advertiser: We'll keep up the pressure on Farepak - 23/10/06
- Swindon Advertiser: Top level probe ordered into Farepak fiasco - 25/10/06
- Swindon Advertiser: Farepak boss: 'I am so sorry' - 12/11/06
- Swindon Advertiser: Please play Santa to Farepak customers - 23/11/06
- Swindon Advertiser: TV documentary shows Farepak families still want answers - 05/12/06
