Sainsbury's is close to completing a deal to reimburse customers of Farepak, the savings club which fell into administration last month.

The retailer is considering giving Farepak customers who had opted for Sainsbury's vouchers, 25% of the value of their savings, according to reports in the Daily Telegraph.

Gwyn Burr, customer director at Sainsbury's, said: “The administrator has indicated that barring unforeseen problems, they will be able to provide us with details of all Farepak agents who had customers.”