Highland sting for small businesses as Gathering bills to remain unpaid
HOPES that cash would be found to pay small businesses left with unpaid bills following the collapse of last summer's international Clan Gathering and Highland Games were dashed by liquidators yesterday.
As creditors gathered in Edinburgh for the first meeting with the insolvency specialists, it emerged that the company – The Gathering 2009, which was run by Tory peer Jamie Sempill – was unable to pay out almost 726,000 owed to 50 private business
es and public body creditors.
The financial report also showed that the company, which was running the event seen as the centrepiece of the Scottish Government's Year of Homecoming 2009, had a trading loss of approximately 570,000 for 2007-9.
A list of creditors compiled by liquidator Campbell-Dallas revealed the highest unsettled account was 180,000 owed to the Scottish Government followed by Historic Scotland who were due around 72,000. Debts owed to private businesses ranged from 33,000 due to Buffalo Power Services and 23,000 and 11,000 respectively owed to Red Sky At Night and Wild Thyme catering companies. Cash-strapped charities were also affected with the British Red Cross left over 3,000 out of pocket.
The decision by the Scottish Government and public-sector agencies to write off the 300,000 they were owed has angered private businesses.
One private business creditor, who attended the meeting but did not want to be named, said: "There is fairly serious disquiet among creditors. Every single person who was there supported the Gathering because of their support for Scotland.
"However you look at it, it was an event supported by the Scottish Government. They kept going on about the 'fantastic' numbers of tourists it brought here, something like 50,000 to Holyrood Park alone and how much they spent. But you can't claim that if you don't pay your way.
"We feel that it is immoral not to pay the creditors. We've done our job and no-one is taking responsibility now that the coffers are empty."
Derek Forsyth, the interim liquidator, said his main focus would be to try to sell the intellectual property rights to "The Gathering". However, the property rights have been independently valued at just 100,000 – far lower than the money owed.
"I will be trying to realise the company's assets concentrating on the intellectual property which we've had valued. Its strength is the goodwill of the branding and the website.
"We've engaged specialist agents on our behalf to look for potential buyers, mostly in the UK but looking overseas too."
Late last year it appeared that Edinburgh City Council, which was owed 24,000, was on the brink of putting a rescue package together, concentrating on the intellectual property. However, in January the council withdrew its interest in the project.
Steve Cardownie, deputy council leader, said: "I understand why small businesses would be aggrieved. It is regrettable their bills aren't being paid but it was a private company which issued the contracts. We've written off our debt because the money is not there and we can't get blood out of a stone."
Earlier this week it emerged that the Auditor General had been asked to investigate the collapse of the company which folded in January. Iain Smith MSP called on Auditor General Robert Black to investigate "allegations of financial misconduct".
Who is owed what
Scottish Government 180,000
Historic Scotland 72,565
Buffalo Power Services 33,131.50
Lothian and Borders Police 27,204.39
HMRC PAYE & NIC 26,797.30
HMRC VAT 26,628.36
Edinburgh City Council 24,329.34
Red Sky At Night 23,500.88
Gavin Ross 16,500
Jenny Gilmour 15,000
Richard Bath14,568.99
Apex Insurance Services13,963.02
MacNaughton Holdings, House of Edgar13137.60
McRobb Display Ltd 13,086.20
BT plc 12,959.61
Corporation Tax 12,115.76
Scottish Ambulance Service 11,738.83
Wild Thyme Ltd 11,091.33
Johnston Newspapers Scotland 9,500
Golf Buggy Hire 9,178.04
Walk the Plank Ltd 8,625
Tartan Silk 7,929.83
Secret Music 7,475
Edinburgh Showtec Ltd 6,561.90
Sportsmasters UK Ltd 6,261.75
Edinburgh Military Tattoo 5,999.53
Paton Plant (Portakabin) 5,647.82
TPA 5,175
Beaver 84 5,057.04
Andrew Wilson & sons 4,888.65
G4S Cash Services (UK) Ltd 4,601.96
Tower event Solutions 4,444.75
Murrayfield Media 4,000
MCL 3,885.21
De Boer Structures (UK) Ltd 3,737.50
Scottish Storytelling Centre 3,406.78
Clarence House 3,390.54
Entertainers Agency 3,225
British Red Cross 3,010.7
CBS Outdoor 2,995.75
Foot Stompin 2,875
Lonach Highland &Friendly Society 2,500
Commercial Office Stationary Ltd 2,351.83
Central Radio Taxi 2,111.34
Jim Sutherland 2,024.17
Chris Watt Photography 2,012.50
Hirex Ltd 1,962.94
Adder Screen print Ltd 1,962.38
Tartan Web Scotland 1,805.50
Sheriff Amenity (Historic Scotland) 1,656
Simone Jenkinson 1,600
Nine Lives Events Management 1,568.85
HSS Hire 1,560.26
Aaron Neighbour 1,500
GT Design & Marketing 1,387.60
UZ Ltd 1,255.80
The Atholl Highlanders 1,250
Lothian and Borders Pipe Band 1,200
Sitelink communications Ltd 1,058
Artwork Clothing Ltd 1,040.17
Fountain Court Apt 1,040
David Webster OBE 1,000
World Heavy Events Championships 1,000
John Brown Caterhire 915.08
Hotel Du Vin & Bistro 900
Speedy Assets Services Ltd 887.29
Gaelic Themes 865.38
Aonghas Macneacail 800
Castle Concerts Ltd 763.24
Eurest Defence Support Services 762.06
Cool Faces 760
Clan Hay Pipe Band 750
Events Solution Ltd 747.50
White Light Ltd 700.58
Capital Embroidery & Screenprint 690.18
National Piping Centre 690
Citysweep Ltd 662.40
Wave 661
Kathleen McInnes 620.70
Scotloo 588.80
Northern Light 547.63
Roddy Young 505.87
Carriages for all Occasions 500
Hawick Scout Fellowhship Band 500
Dynamic Earth 494.50
Deborah Services Ltd 437.89
PSMW Distribution Ltd (Purely Scottish) 337.87
GW Publishing 326.25
An Darach Ltd 300
D and J Services Scotland 300
Leep Recycling 297.87
Adelina lolkema 285.57
Print Vision 285.20
Forth Ports Plc 269.62
Hewden 260
Big TV UK Ltd 258.75
Briggs Equipment UK 253
Edinburgh Chamber Commerce 230
Shawshank Ltd (Bishops Newsagents) 197.67
Butlers Chauffeur 184
VisitScotland 182.40
Think Big 149.50
MCPS (Mechanical Copyright Protection Society Ltd) 134.26
Forth Fire Protection 132.25
Leith Copy and print 122.20
Michael Wares Cater Hire 109.25
Elinor Mhairhi Burton 108.80
The Audience Business 103.50
DED Ltd 101.20
Greenfingers 99.30
Scottish Viewpoint 86.25
The British Association of Teachers of Dancing 40