Small firms gather to make plea for £100,000 payout

Published on Wednesday 16 February 2011 13:34

A DOZEN small businesses still owed money following the troubled Gathering event have joined forces to threaten legal action against the council.

More than 107,000 is owed to local businesses that provided services for the 2009 event and they have instructed their lawyers to write to council bosses demanding payment.

So far, Portakabin is the only creditor to have been paid, having received 5647.

The 12 local companies say they too "deserve" to be paid for the services they provided.

Martin Hunt, managing director of Tartan Silk public relations, which is owed just under 8000, said: "We feel that however much they try to make out that it was not a government event, to all intents and purposes, everyone appreciates that it had the full support of the government and the city council and we as businesses and rate payers to the city coffers deserve to be paid.

"Hotels and other businesses did hugely well out of it and those of us who made it happen deserve payment for that.

"We charged a very fair fee because the Gathering was a hugely successful event.

"If we are asked to do a job we deserve to be paid for it."

The lawyers working on behalf of the companies have instructed the council to respond to their demand within seven days.

Graham Birse, managing director of Edinburgh Chamber of Commerce, which is owed 230, said: "The patience of the small creditors has finally run out. They have waited quite a long time for a promised solution from the Scottish Government.

"Our members and creditors are continuing to trade under very difficult circumstances.

"It's the intention of the creditors to proceed to legal action unless the council can provide a clear solution or remedy."

The Gathering Ltd went into receivership with debts of 516,000.

An Audit Scotland report into the event said the main problem had been over-optimistic projections for ticket sales.

Council leader Jenny Dawe said: "The firms were not paid by The Gathering 2009 Ltd, Lord Sempill's company that went into liquidation on January 27, 2010.

"It is up to the liquidator to deal with payment to creditors."