Trade secretary Alistair Darling has labelled the collapse of Christmas hamper firm Farepak as "a matter of great concern".
Thousands of families will be making alternative Christmas arrangements following the company's decision to cease trading and Mr Darling's department is set to launch a full enquiry as a result.
Customers had been paying instalments to the Swindon-based firm, with the agreement that they would receive food hampers in time for the Christmas party season.
"It is a matter of great concern that a number of people across the UK paid a large amount of money to a company that is now in administration," said Mr Darling.
"We do not normally announce investigations, but because this company is in administration I can tell the committee that this morning, officers from the Company Investigations Branch have started an investigation under the Companies Act 1985."
Farepak agent Beryl Tabel told the Swindon Advertiser this week that the company had not informed the workers that it was going into administration.