THOUSANDS OF families faced the prospect of a bleak Christmas yesterday after a last-gasp attempt to help victims of a collapsed hamper firm failed.

The British Retail Consortium (BRC) had pledged to make a “goodwill gesture” payment to Farepak customers when the company ran into trouble last month. However, the BRC admitted yesterday that the situation was far more complicated than initially thought and said it would not be able to deliver a solution by Christmas.

Swindon-based Farepak ran a savings scheme in which an estimated 150,000 customers put money aside for vouchers and Christmas hampers.

Administrators have said that no orders will be fulfilled after the company was taken into administration on October 13.

Some of those affected are understood to have saved four-figure sums to ensure a merry Christmas, but are now facing a holiday season without presents or turkey.

On Thursday Parliament called on the Serious Fraud Squad to examine the Farepak collapse, but it was hoped the BRC would offer a lifeline to struggling families.

However, the consortium, which represents retailers across the UK, said it had “discounted attempts” to find a workable solution to the problem.

A BRC spokesman said, “After intensive discussions with retailers, the Farepak administrators and other interested parties, the consortium has reluctantly concluded any meaningful goodwill gesture it can make is unlikely to meet the criteria of being simple, fraud-free, not derisory and deliverable before Christmas.”

It insisted members would be willing to consider supporting an alternative proposal if anyone else could come up with a plan.

The BRC explained Farepak did not have a central database of customers and available information was neither reliable nor comprehensive.

It also needed to find a far greater amount of money to compensate victims than had first been anticipated.

The spokesman added, “The BRC has decided that it would be better to discontinue its efforts now rather than allow the situation to drag on for the next few weeks with no real possibility of ultimate success.”

Dundee East MP Stewart Hosie, SNP Treasury spokes-man, said, “It is clear from the statement that there is a complete shambles at the heart of Farepak.

“It is utterly unbelievable that they did not even have a central database of their customers.”

Angus MP Mike Weir said, “Many local families have been dealt a crushing blow by the collapse of Farepak and will be further dismayed that the BRC has given up its attempt to help.”