A former owner of Snow Factor in Glasgow used a shady scheme to dodge staff payouts, leaving over 100 employees without pay.
Glasgow: The former owner of the Snow Factor centre used a dodgy scheme to shut down the business. This move helped him avoid paying his staff.
When Jamie Smith closed the popular centre, over 100 jobs were lost. Staff worked for weeks without pay, leaving a trail of debt behind.
Many former employees are still fighting for their redundancy payments, even after two years. Smith, now debt-free, runs a yachting business in Greece.
He was one of 1,000 UK directors using a “corporate rescue” process. The UK’s Insolvency Service is taking action to shut this down.
John Irvin, who runs the Atherton group, helped directors avoid millions in debt. They left financial chaos behind as they dissolved companies.
Irvin paid fake directors, like Neville Taylor, to replace those with big debts. These replacements made no effort to save the companies.
After the closure, former employees criticized Smith for leaving them in the lurch. Glasgow East MP John Grady is calling for an investigation into the situation.
Smith sold the business to new directors for about £15,000. Their only goal was to wind up the company, leaving staff in the dark.
Adrian Martin, a ski instructor, said they loved working at Snow Factor. They hoped Taylor would bring new investment, but he vanished without a trace.
Staff were confused when wages started being paid through a charity Smith set up. Many felt angry seeing Smith enjoying life in Greece.
Patsy Millar, another instructor, said the closure demoralized the close-knit team. They had hoped for a revival after the sale.
Smith took control of Snow Factor in 2017. By 2019, it accounted for half of Scotland’s mountain ski days. But Brexit and Covid hit hard.
He resigned in October 2020, selling the company and its debts. He set up another company to run Snow Factor before selling it again.
After selling, Smith sailed away to Greece, leaving Taylor in charge of the debts. Taylor disappeared days after promising to save jobs.
Employees say Smith’s actions were appalling. They felt he was more interested in leaving than saving their jobs.
Smith walked away from the Ice Factor climbing wall in February 2023. He appointed new directors before its closure.
Now in Greece, Smith runs a luxury catamaran business. He boasts about the beauty of the area in videos.
Smith denies any wrongdoing, claiming the allegations come from unhappy former employees. He says an investigator found no reason for disqualification.
The Insolvency Service cannot discuss specific cases, but the situation remains under scrutiny.
