VICTIMS of the Farepak collapse, which left thousands of customers out of pocket, say it is ludicrous that administrators’ costs are higher than the proposed compensation payout.

The Christmas hamper firm, which allowed people to spread the cost of Christmas food and presents, went into liquidation five years ago, causing its 120,000 customers to lose nearly £40m – an average of £400 each.

It emerged yesterday that the fees dealing with the administration have exceeded any potential compensation for its victims, who were expected to receive a share of about £5.53m.

Administrator BDO confirmed that the cost of the administration and liquidation to date stands at £8.2m, including its own fees as well as those of insurers and PR executives.

Former Farepak agent Kath Morton, from Coundon, in County Durham, whose 31 customers collectively lost £21,000, expressed anger and disbelief over the hefty fees and said it felt like being robbed twice.

“We were the ones who were robbed and all the receivers have done is make money out of us.

“It’s like a double theft. We have been promised 15 per cent of our money back since day one.

“Even after five years it’s something that you can’t get out of your head.

“Every October we get a 12-page report from the receivers, who now tell us it’s getting expensive for them to keep notifying their customers.

“The country is on its knees and they are making £8.2m out of people who were robbed in the first place.”

A spokeswoman for BDO said: “The administration and liquidation of Farepak is complex and has involved an exceptionally large number of creditors, the identities of which were unknown at the outset of the administration.

“All fees have been approved by the liquidation committee.”

The Farepak Victims Committee has launched an online petition to demand the remaining £36.9m owed is repaid and those responsible are held to account.

Farepak was set up in 1969 and allowed customers to pay in money on a monthly basis to secure hamper deliveries at Christmas.