The former boss of Braehead Snow Factor is under investigation regarding £2 million missing before its 2022 closure. He is accused of misfeasance.
Liquidators think Smith and two others moved funds from the ski slope’s company at XSite Braehead. They threaten court if the money is not paid back. The Daily Record wrote about this.
Smith used the “Atherton scheme,” also used by more than 1,000 directors. The scheme lets directors sell firms with debts for £1. New directors, then, ignore demands from creditors.
Jamie Smith now runs a yachting tour business in Rhodes, Greece. Glasgow Snow Factor workers still fight for their pay. One ex-worker said millions might have gone missing and thinks the company should have paid them properly.
Over 100 Snow Factor and Ice Factor workers were angry when the businesses closed down strangely. Several related companies were sold, and the Atherton scheme was used. A January 2 report says over £400,000 moved to other companies in Smith’s Ice Factor Group.
RSM accountancy firm investigated and found twenty £50,000 payments were made to Ice Factor International Limited, totaling £1,000,000. Lawyers want the money back but got no reply.
The report says they started a legal action targeting the ex-directors of the company to recover the money. They will go to court if needed.
The report also says Snow Factor Ltd loaned £170,172 to Ice Factor Kinlochleven Ltd, and they later cancelled the debt. Investigations also look at “undervalue” deals, moving money away from creditors. The total money in question is over £2 million.
Smith sold the Snow Factor companies used to run the business at Braehead. “Patsy” directors took over with the debts. Smith then moved to Greece for yachting, supposedly paying £15,000 to sell SF Ops Ltd.
Ex-staff want to wind up the SF Ops company, hoping accountants will find assets for their pay. Winding up action could trigger safety-net payments for unpaid wages, holiday & notice pay.
If misfeasance is proven, the court can order repayment, restoring property or assets. It means paying money back to the company.
Smith is now in Lindos, captaining a luxury catamaran. He sails the Greek islands with rich people using his Greek company.
Smith denies any wrongdoing when contacted, saying claims are from unhappy ex-employees. He said a report found no fault in director actions, which would prevent disqualification of those directors. The Insolvency Service would not comment.