Jamie Smith, of Snow Factor near Glasgow, is under investigation for potentially moving £2M before its collapse according to liquidators.
Apparently, he’s moved to Greece now, where he runs a yacht tour business. They’ve sent him papers about “misfeasance” and are threatening to sue him if he does not pay back the money. Reportedly, Smith used a dodgy scheme that let him sell companies with big debts for £1.
Ex-employees from Snow Factor are really angry. They’re fighting for redundancy payments as the slope closed down two years ago. One employee said millions of pounds disappeared, and they think he should have paid them properly. More than one hundred workers lost out.
A report says over £400,000 went to other companies in Smith’s Ice Factor Group. Another investigation found twenty payments of £50,000 which went to Ice Factor International Limited. Solicitors demanded repayment, but got no answer.
They’re suing Smith to get the money back. The report says they will go to court. Snow Factor also loaned £170,172 to another company, Ice Factor Kinlochleven. Later, they canceled the loan repayment and are also investigating other transactions. The total amount they are chasing is over £2 million.
Smith sold companies he used for Snow Factor, using “patsy” directors to take on the debts. After selling one company, he moved to Greece. Now, ex-staff want to wind up another company, hoping to find assets which could pay their redundancy.
Winding up the firm triggers government payouts, covering unpaid wages and holiday pay. If misfeasance is proven, the court can order repayment. Smith now sails in Greece with rich clients, using a company he set up there.
Smith claimed he did nothing wrong, saying ex-employees are just upset. He cited a report that found no fault with his actions. However, the Insolvency Service declined to comment.
