Farepak boss could be stripped of knighthood

13 April 2012

Sir Clive Thompson, the boss of collapsed Christmas hamper firm Farepak, could be stripped of his title.

As Sir Clive began a luxury two-week break in Argentina yesterday, it emerged that Jim Devine - the Labour MP who likened him to the Sheriff of Nottingham - has written to the Cabinet Office demanding his knighthood be 'immediately forfeited'.

The news may be of little consolation to Farepak's 150,000 customers, but it could mar Sir Clive's holiday.

He flew first class to Buenos Aires, where he and his wife Judith are staying at the opulent Alvear Palace Hotel, where rooms cost up to £2,500 per night and come with their own butler.

His five-star trip will further outrage the low-income families who lost a total of £40million in Christmas savings following Farepak's controversial collapse last month.

The Cabinet Office confirmed yesterday that Mr Devine's complaint would be looked into once a Department of Trade and Industry investigation into the Farepak fiasco has been completed.

Sir Clive was knighted in 1996 for 'services to industry'. He was chief executive of Rentokil at the time. He was paid a consultancy fee of £100,000 for working two days per month as chairman of Farepak's parent company EHR.

Mr Devine said Sir Clive and his fellow directors had 'serious questions' to answer about the company's collapse, 'not least of which is where is the money?'.

He said Sir Clive's trip to Argentina was 'rubbing the noses of Farepak customers in the dirt' and 'symbolises the arrogance of the man'.

After arriving in Buenos Aires on a British Airways flight at a cost of £8,000 per ticket, Sir Clive and his wife checked into the Alvear Palace, whose previous guests include Antonio Banderas, Sharon Stone and Michael Schumacher.

After recovering from their flight, Sir Clive and his wife took a stroll through the Patio Bullrich shopping mall, whose designer stores include Christian Dior, Hugo Boss and Max Mara.

Sir Clive, 63, who has a personal fortune of £30million and lives in a £3million house in Kent, is due to return to the UK at the end of the month.

Mr Devine said in a letter to the Cabinet Office's forfeiture committee: 'Christmas plans for thousands of hard-working families have been ruined. I strongly believe that a knighthood for "services to industry" is incompatible with the honour.

'Such a reward in the face of failure does a complete disservice to customers, industry and the public. I put it to the committee that this honour should be immediately forfeited.'

A Cabinet Office spokesman said: 'The sovereign may, on the advice of ministers, cancel the award if the holder is considered unworthy to retain it.'

He added that no investigation could take place until the DTI had completed its own inquiry into the Farepak collapse, which is likely to take several months.

A spokesman for Sir Clive declined to comment.

Donations to the Farepak Response Fund, which will distribute money to families who lost their savings, can be made on 0845 2601096 between 9am and 6pm. The closing date is November 24.

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