Fees for dealing with the administration and liquidation of Farepak, which ran a Christmas savings club, have now totalled £8.2m, far more that the £5.53 million of compensation promised to customers.

Farepak collapsed in 2006, when nearly 120,000 Christmas club members lost an average of £400 each.

Just 6,000 customers, who made cash deposits immediately before the business failed, have received any payments to date, as these deposits were dealt with separately.

In April 2010, after administrators from BDO agreed a settlement with Farepak’s directors, a final financial offer of 15p in the pound was made to customers, representing just £5.53m of the £38m they were collectively owed.

However, the latest documents filed at Companies House show that fees for lawyers, administrators, insurers and other professionals involved in the administration and liquidation of the company, amount to £8.2m.

Many of the people who paid into the Christmas Savings Club were on low incomes and the Farepak Victims Committee is calling for the Government to ensure that members of this type of savings club are protected in the same way as bank customers are protected.

Christmas Savings Clubs tend to attract savers on low incomes because small amounts can be saved over the year and the money can be repaid as vouchers, food hampers and other goods, which removes the temptation of spending the money elsewhere.

However, there are alternatives which offer greater protection for savers, as well as interest to help prevent the savings depreciating in value by the time Christmas comes around.

Many Credit Unions offer Christmas savings plans to members, accepting deposits as small as £1 and holding the money in an account that is not accessible until November.

Building Society are also gearing up to launch Christmas accounts ready for next year, including Skipton Building Society which is due to launch its My Christmas Saver account tomorrow.

Another alternative is the Post Office’s Christmas Club, which is ideal for anyone who finds it difficult to get to a bank, although it does not pay any interest.

The Post Office scheme offers a prepay cash card which is unlocked in November and can then be used to pay for goods at thousands of retailers including Debenhams, Argos and PC World.

Savers can make deposits as small as £2 and at the end of October they receive money-off vouchers to use at retailers participating in the scheme.

A chart of NFLX and some thoughts.

There are good and valid reasons for this 75% drop in 4 months. The stock deserved to have gotten crushed. But this is more than just bad company news. There are a bunch of other “names” that have been slammed to the ground of late (FSLR/MCP etc). Those who listened to the TV hosts, stockbrokers and “smart guy” talk over drinks deserve everything they get. But I have to ask,

The answer is that Ben’s contribution to this stockholder debacle is not zero. All the Fed talkers have said again and again they want to force people to buy risk assets. They succeeded. And along the way those that listened to Ben got stepped on.

For sure this will happen again and again. When money has no intrinsic value due to ZIRP it will create froth in prices of stocks, commodities and bonds. I can’t think of a dumber policy than that. I hope that Bernanke followed his own advice and loaded up on NFLX.

Published at Bruce Krasting’s blog >

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See Also:

• These Are The S&P 500 Key Levels (Until Europe Makes Or Breaks It)
• FED DESPERATION HITS: Get Ready For The Mother Of All Yield Chases
• Sorry, The Stock Market Just Isn’t Cheap

According to the latest Confederation of British Industry (CBI) distributive trades survey, the volume of sales on the UK High Street were lower this month versus a year ago.

The figures suggest continue to be cautious about the economic outlook and rein in their spending on the back of rising unemployment, higher inflation and slow wage growth.

The CBI’s survey established that 24% of retailers saw sales volumes rise on an annual basis, while 39% reported a fall.

As a result, the balance fell to -15% – the lowest since May 2010.

The survey, which was conducted between 25 August and 14 September, discovered that most sub-sectors suffered with falls in department stores, clothing, footwear, furniture and carpets.

Commenting on the figures, Judith McKenna, chair of the CBI Distributive Trades Panel, said: “High street sales are sluggish but appear to be stabilising.

“However consumer confidence continues to be bruised by a combination of low wage growth, high prices and rising unemployment. Shoppers are still clamping down on discretionary spending and focused on buying the basics at the best price.”

Ms McKenna, who is also ASDA’s chief operating officer, added that consumers will continue to struggle with the winter utility bills hike and, as a result, retailers will face a challenging October.

The survey questioned more than 130 firms, of which 74 were retailers, 50 were wholesalers and 15 motor traders.

The figures tie-in with other reports about the High Street after accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

Several well-known retailers have recently reported falls in sales volumes with the John Lewis Partnership, which is regarded as a barometer of British retailing, recently reporting a marginal increase in sales but said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket group, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

Earlier this month, Home Retail Group announced a drop in sales at both its Argos and Homebase chains, while electrical goods chain Dixons Retail also posted a fall in sales.

Today meanwhile, Game Group, which sells computer and video games, consoles and accessories, said it made a pre-tax loss of £51.5 million in the six months to July 31, against a loss of £21.5 million in the same period a year earlier.

The company typically makes its profit in the latter half of the year when sales are boosted by the crucial Christmas trading period. However, it expects conditions to remain challenging for the remainder of the year.

Energy tariffs are so complicated that even an accountant could not calculate how much they should be paying, according to latest research from Which?.

The consumer group asked 36 people including a solicitor, an engineer and an accountant, to work out their domestic energy bill using only the information from the supplier’s website, and a calculator, pencil and paper or Excel.

Only one, a company director, proved successful.

According to Which? the complexity of bills and tariffs mean suppliers can get away with “tricks and caveats”, including tiered pricing that penalises low users and discounts that don’t materialise.

With households facing energy price rises of between 10% and 20% this winter, Which? says it is vital that people are able to work out their bills and check they’re paying the right price.

The watchdog has therefore launched an Affordable Energy Campaign to help people spend as little as possible, and is calling on regulator, Ofgem, to introduce one simple format for all tariffs, as part of its ongoing review of the retail market.

Should that day come, people would be able to compare tariffs at a glance and easily see which is cheapest.

Earlier this week, Energy Secretary, Chris Huhne, promised to “get tough” with the UK six biggest energy companies, forcing them to make it easier for consumers to pick out the best suppliers and switch providers.

British Gas, Scottish Power, Scottish and Southern, Npower, E On and EDF could also be challenged by new competition, which the minister says he is keen to encourage.

Meanwhile, Which? will carry on campaigning for a standardised format for tariffs comprising: a daily charge covering fixed costs and a unit rate covering the actual energy used.

The idea is so simple that energy companies may have difficulty engaging with it.

Debenhams, which is Britain’s second largest department store after John Lewis, has today exceeded market expectations after reporting growth of 0.4% in the nine week period to the end of August on a like-for-like basis.

The retailing giant said aggressive summer discounting and promotions had helped increase its market share.

The company said growth came from its Danish subsidiary, Magasin du Nord, acquired two years ago, while the company has benefited from strong online sales throughout the year.

Chief executive Michael Sharp said helping to keep prices competitive had helped.

He said: “It’s not just about starting the sale early. Customers are liking what we are doing and our Designers at Debenhams ranges.

“There will be winners and losers and we think we are well positioned to be one of the winners.”

The news was well received by the market after shares in the company increased 3.5% in early trading today – outperforming the rest of the market.

In the meantime, the retailer said it has leased 145,000 sq ft at the Regent’s Place office, located near Regent’s Park, for 25 years, for its new headquarters.

The site is currently under development and completion is expected in the summer of 2013.

However, the figures come at a time when the British high street is struggling. Last week, the Office for National Statistics (ONS) revealed UK retail sales fell by 0.2% in August.

Households continue to be squeezed by higher inflation, rising unemployment and sluggish wage growth and this is affecting retailers.

Also last week, the John Lewis Partnership, which is regarded as a barometer of British retailing, reported a marginal increase in sales and said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket chain, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

At his keynote speech to the Liberal Democrat conference, Business Secretary Vince Cable is today expected to say that shareholders should have more of a say when it comes to bonuses paid to executives.

He is also expected to outline plans which will force firms to disclose their excessive pay packages.

Mr Cable is expected to set out new rules that will require the total value of salary, shares, pensions and bonuses to be set out every year.

Currently, the details of each executive board member’s salary, pension, bonuses, and shareholdings are recorded but in separate parts of a company’s annual report.

However, under the new proposals, the company will have to fully explain the details of the package, while giving projections of the minimum and maximum each executive could expect the next year.

Furthermore, a total figure will be provided to shareholders for the first time.

Mr Cable, who last year publicly criticised large bonuses, said that giving shareholders a veto over the packages was something he approves of.

His proposals come shortly after a report found that the average annual bonus for a director in a FTSE 100 company has soared by 187% in the last decade.

The findings were in a report by the High Pay Commission and discovered that top executives received a bonus worth 90% last year compared with 48% of salary in 2002, despite the same level of performance within the company and massive share price falls in recent years.

The controversial subject of remuneration packages has been a major issue for some time now and bankers’ bonuses, in particular, have sparked public outrage since many argued that bankers’ bonuses reward the risk-taking culture that led to the financial crisis.

The report by the High Pay Commission also found that average total earnings of directors of banks which were bailed out by the taxpayer were just under £4 million in 2010 compared with £1.7 million a decade ago.

The Office for National Statistics (ONS) has today revealed UK retail sales fell by 0.2% in August after riots earlier in the month affected trade.

The fall followed slower growth in the previous two months after sales rose just 0.2% in July and 0.8% in June.

In the meantime, food sales were also down – an area which has not particularly suffered as consumers rein in their spending.

However, it appears consumers are being cautious after food sales noted a 0.3% fall in August compared with growth of 0.7% in July.

Households continue to be squeezed by higher inflation, rising unemployment and sluggish wage growth.

The ONS revealed earlier this week that inflation rose further in August, to 4.5% on an annual basis.

Consumer spending is a key driver of economic growth and as a result of today’s figures, a further slowdown is anticipated for the third quarter.

Several retailers have recently reported tough trading conditions. Today, Kesa, the parent company of electrical retailer Comet, revealed a sharp fall in sales.

Total revenue in the previous three months fell by 9.8% on a like-for-like basis while sales slumped almost 22% after Kesa blamed weak trading.

However, the company said the fall was expected and compares with strong sales in 2010 due to the football World Cup and the popular launch of Apple’s iPad.

Yesterday, the John Lewis Partnership, which is regarded as a barometer of British retailing, has reported a marginal increase in sales and said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket chain, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

In addition, last week, Home Retail Group announced a drop in sales at both its Argos and Homebase chains, while electrical goods chain Dixons Retail posted a fall in sales.

Accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

However, there was some good news today after Kingfisher, the owner of DIY chain B&Q, announced plans to create more than 1,200 new jobs through a major expansion of its trade supply arm, Screwfix.

Figures today show consumers continue to cutback in the face of higher inflation and rising unemployment after Kesa, the parent company of electrical retailer Comet, revealed a sharp fall in sales.

Total revenue in the previous three months fell by 9.8% on a like-for-like basis while sales slumped almost 22% after the company blamed weak trading.

However, the company said the fall was expected and compares with strong sales in 2010 due to the football World Cup and the popular launch of Apple’s iPad.

Kesa also claimed that Comet sales had shown “an improving trend through the quarter”.

Chief executive Thierry Falque-Pierrotin comments: “The start of the year has been tough against the strong World Cup comparatives of last year and weakening market conditions.”

The weak figures follow a 6.8% decline in sales at Comet announced in June, sending the UK electricals business into a €10 million (£9 million) loss.

The figures come just a day after the John Lewis Partnership, which is regarded as a barometer of British retailing, has reported a marginal increase in sales and said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket chain, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

In addition, last week, Home Retail Group announced a drop in sales at both its Argos and Homebase chains, while electrical goods chain Dixons Retail posted a fall in sales.

Accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

Several retailers are under severe financial strain as the face their quarterly rent deadline at the end of this month.

Earlier this year, the rent deadlines at the end of March and June resulted in a series of retailers entering administration including Focus DIY, Habitat, TJ Hughes and fashion chain Jane Norman.

The John Lewis Partnership, which is regarded as a barometer of British retailing, has reported a marginal increase in sales and said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket chain, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

The company has bucked the trend when it comes to retail sales over the last few months but today’s figures highlight ongoing concerns about spending as consumers cut back due to high unemployment, rising inflation and spending cuts.

In the meantime, Waitrose said sales were 8.7% higher at £2.6 billion but profits were down 13.8%.

However, it highlighted that 300,000 more customers shopped at Waitrose each week and its market share had risen by 0.2% to 4.1%.

Chairman, Charlie Mayfield, said trading conditions were set to remain challenging for the remainder of the year and into next year.

He comments: “We are not simply waiting for the recovery, but instead we have increased the pace of investment and innovation across the Partnership putting us in the best possible position to seize the opportunity created by a rapidly changing retail environment.”

The figures come shortly after other British retailers have reported tough trading conditions.

Home Retail Group announced a drop in sales at both its Argos and Homebase chains last week, while electrical goods chain Dixons Retail posted a fall in sales.

Many High Street retailers continue to struggle as consumers’ cutback and the British Retail Consortium (BRC) highlighted this in its retail sales report for August.

According to the BRC, like-for-like sales (which exclude the impact of sales at new stores) fell 0.6% last month on an annual basis.

Accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

Several retailers are under severe financial strain as the face their quarterly rent deadline at the end of this month.

Earlier this year, the rent deadlines at the end of March and June resulted in a series of retailers entering administration including Focus DIY, Habitat, TJ Hughes and fashion chain Jane Norman.