Council writes off £200,000 debt as Christmas ice rink firm goes bust

A DEBT of more than £200,000 to the City of Edinburgh Council is to be written off after a company owned by a Fringe operator was dissolved.

Karen Koren’s GB Productions Ltd owes money to the council dating back to January 2009 in relation to her company’s Christmas ice rink in Princes Street Gardens.

It has emerged that the company has been struck off the register of companies by Companies House because of its failure to file financial documents. This has led to GB Productions being dissolved.

It is understood the council has little chance of the debt being repaid because GB Productions has few assets. Labour councillor Eric Barry said: “This is mismanagement at the highest level of the council and we have to look at the procedures because they have been extremely casual about this money. I can understand it if a firm goes bust, but the circumstances are different here.”

Gordon Munro, the culture and leisure spokesman for the Labour group, said: “I am surprised such a cavalier approach to outstanding debts to the council has been taken, especially towards someone the council still deals with.”

A spokesman for Companies House confirmed that GB Productions had been struck off “for failure to file documents and due to no subsequent contact being made, which led us to believe the company was inactive”.

A council spokeswoman said: “This issue will be addressed in a report that goes to the next finance and resources committee.”

No-one from GB Productions was available to comment.