A tycoon faces backlash for shutting down his snow sports business, leaving staff unpaid and in debt.
Glasgow: A tycoon is in hot water for closing his winter sports business. He used a complicated scheme to avoid paying his staff. This left many workers without their hard-earned wages.
Jamie Smith ran the Snow Factor in Braehead and an ice climbing wall in Kinlochleven. Both businesses shut down, resulting in over 100 job losses. Many staff worked for weeks without pay and are still fighting for redundancy payments.
While his former employees struggle, Smith is now running a yachting business in Greece. Workers were outraged to learn he used a controversial “corporate rescue” process to escape his debts. This scheme has drawn scrutiny from the UK’s Insolvency Service.
The Atherton group, led by John Irvin, helped directors like Smith avoid millions in debts. They paid fake directors to take over companies, leaving them to dissolve without any effort to save jobs. This has caused chaos for many businesses.
Former employees of Snow Factor criticized Smith for abandoning them. Glasgow East MP John Grady is calling for an investigation into the closures. He wants to ensure that employees and creditors get the money they are owed.
Smith sold the business to new directors for about £15,000. These directors had no intention of saving the company. Ski instructor Adrian Martin expressed disappointment, saying they were left with false hope.
Staff were demoralized when the slope closed. They had hoped for a revival after the sale. Smith had previously claimed the business was thriving, but the pandemic hit hard. He resigned in 2020 and sold the company, leaving debts behind.
After selling, Smith moved to Greece to enjoy his new life. He now runs a luxury yacht tour business. Employees are frustrated, as they have not heard from the new directors since the closure.
One employee noted that they might lose their tribunal awards if action isn’t taken soon. They feel Smith’s actions were selfish, prioritizing his exit over the welfare of his staff.
Smith has denied any wrongdoing, claiming the allegations come from unhappy former employees. He insists that an investigator found no grounds for disqualification. Meanwhile, the Insolvency Service has not commented on specific cases.
