A High Court legal challenge against the former directors of collapsed Christmas hamper company Farepak has been dropped, angering victims left thousands of pounds out-of-pocket by the bankruptcy.
The challenge was to prevent the ex-bosses of the Swindon-based firm becoming company directors. Farepak collapsed in 2006, leaving 116,000 customers with total losses of £37m.
The Insolvency Service has abandoned the case against Farepak and its parent company European Home Retail after considering the evidence.
Louise McDaid, chair of the Farepak Victims Committee, said: "We are asking [Business Secretary Vince] Cable to meet with us to explain to us why this has failed. And more importantly from our perspective, we need this never to happen again."
Mr Cable said he was "deeply disappointed" by the Insolvency Service's decision.
Farepak operated by collecting money from its customers on a monthly basis throughout the year. They could then use this to buy Christmas hampers or vouchers for use in stores such as Argos.
The former directors named in the High Court case were Stevan Fowler, Neil Gillis, Nicholas Gilodi-Johnson, Stephen Hicks, Michael Johns, Paul Munn, Joanne Ponting, William Rollason and Sir Clive Thompson.
