Festival chief hails Koren but vows to chase her for debts

Councillor Steve Cardownie said Karen Koren, who runs the Gilded Balloon festival empire, deserved credit for coming up with an idea that now "features on postcards of Edinburgh". But he said that the council would pursue her for debts she ran up during her time running the Princes Street Gardens rink.

It is thought that the council could start legal proceedings if Ms Koren, who launched the ice rink in 1998 after taking inspiration from a similar attraction in New York, does not agree to start paying back the 201,633 her company is thought to still owe.

Cllr Cardownie said: "She will be pursued like any other debtor to the council would.

"I don't want people to denigrate her because she created that iconic ice rink, so we do not want her demonised. Let's not forget her record - she is to be commended.

"It is now in the hands of the financial officials but, of course, we'll pursue it as we would with anyone else."

Fears for the future of Ms Koren's ice rink were first raised in 2009 after it emerged she still owed the council 100,000 from the previous year's event.

That figure has now doubled and council chiefs decided not to award her the contract to run the ice rink this year and instead asked Edinburgh's Christmas operator She's Gott It to find a new contractor.

There had also been concerns about a 46 per cent decline in the number of people visiting the ice rink and bungydome last year, when audience numbers across the festive period only reached 34,458.

Edinburgh-based AJA Events has now been handed the contract to operate the attraction.

Cllr Cardownie believes the company can bring new ideas to make the ice rink pull in bigger crowds. He said: "It is now a truly established part of Edinburgh's Christmas. I like Karen and she's been about in Edinburgh for decades but this year it should be better because there will be a stage with live music and some of the stalls with food and drink will be much better. What Karen has established has now been embellished."

AJA Events has set up a new website for "Edinburgh's Ice Rink" and there will be two outdoor stages with live music at the ice rink throughout the festive period.

An X Factor-style competition is to be run featuring local schools and youth groups.

Outdoor eating in a heated area under canopies will also be introduced for the first time, with a diverse range of food and drink on offer.

Nikkie Gott, managing director of She's Gott It, said: "I feel it will add to the customer offer.

"As far as the customer experience, anything that gives something back to the customer, such as outdoor dining which we've not had before, is great and it will be a really nice addition to the Christmas programme.

"It will have a bit of a contemporary feel to it but it will be cosmopolitan as well and people will be able to have one experience one week and a completely different experience the next.

"The more we change the programme and keep it fresh, week in week out, the more visitors we can attract."

Ms Koren was not available for comment. She has previously declined to talk in detail about the issue but insisted that she has had no subsidy to run the ice rink in the last few years and that she personally does not owe the council any money.