VOUCHER supplier Choice has been forced into administration because savings club Family Hampers was unable to pay the £10m it owed, The Northern Echo learned yesterday.

The Gateshead company, which distributed its own gift vouchers, collapsed on February 2, owing about £55m to high street retailers.

Ian Stokoe, of administrators PricewaterhouseCoopers said its demise was due to Leeds-based Family Hampers' inability to pay its £10m bill.

On February 15, Family Hampers also plunged into administration. It was then bought by Birkenhead-based Park Group, which has renamed the business Family Christmas Savings Club.

Adrian Berry, of Deloitte and Touche, administrators for Family Hampers, said Choice was likely to receive some money.

"There is still a substantial amount of assets and there will be a dividend for unsecured creditors, such as Choice," he said.

A creditors' meeting is scheduled to take place this morning.

Mr Stokoe said creditors were likely to receive a payout worth about 70p for every £1 that they were owed.

Customers holding Choice vouchers are advised to return them to the place of purchase for reimbursement or call 0191-478 7361.

Customers who got vouchers through Family Hampers can get them replaced.

Send unredeemed vouchers to Valley Road, Birkenhead, CH41 7ED before the end of this month.