Padstow Christmas Festival: Traders who lost thousands threaten civil action after police investigation ends

Traders who lost nearly £30,000 due to an axed Christmas market event have been told no crime was committed and they must take civil action if they want to try and recoup any losses. It's as the organiser stands by her decision and says any civil action would be hopeless as there is no money left in the company.

Devon and Cornwall Police has been looking into the finances of Tina Evans, the woman behind the adored Padstow Christmas Festival, which, until the announcement was made in May, had been running successfully for 16 years.

Due to take place for the 17th time this December, a sudden and unexpected cancellation of the festival, which brings thousands to Padstow each winter and along with it puts hundreds of thousands of pounds into the local economy, devastated many of its fans. But in the days that followed, upset traders explained they had forked out deposits to attend the event this year and wanted their money back.

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After a period of silence following the four-day festival's cancellation, an email sent out by its organiser confirmed they wouldn't be getting a penny back as she wished them all the best for the future. Tina Evans initially said she had to pay out money ahead of the event so there was nothing left to return.

One of the traders told CornwallLive at the time: "This is completely unfair to all the traders who also had to pay seven per cent more than last year because of the rising costs. Considering Christmas events require deposits 10 to 11 months prior, small businesses suffer huge costs at the beginning of each year."

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They added: "However, we all know that come the events, we then make that money back and more. To have lost our deposit (some traders have lost over £1,000 in deposits) is absolutely crippling."

It later transpired that no service providers had taken deposits for the year ahead leaving traders wondering where the money, confirmed to be at least £29,723.10, and estimated to be more like £50,000 when including sponsorships and other traders who had not come forward, had gone.

They demanded to know where their funds had gone. Ms Evans then came out with a further explanation, admitting she used this year's deposit money to pay off bills from last year that she hadn't yet settled.

Devon and Cornwall Police previously confirmed it had received a "number of complaints" from traders saying they believed it was a case of fraud. The force has confirmed that now, following a full investigation, no crime is believed to have taken place and that it is indeed a civil law matter, not criminal.

In an email to traders, the investigating officer said they had even looked at the organiser's finances to see if she had taken any of the money for herself as part of the investigation. They confirmed that all outgoings "appeared to be legitimate business costs".

The detective inspector said: "We did review how deposits taken were used, to see if there was any evidence of money being withdrawn from the company to the benefit of the director, which would indicate an intent to defraud. The transactions seen all appeared to be legitimate business costs."

He added: "It is not unusual or criminal for companies to go into debt and attempt to trade their way out of that situation" saying officers "found nothing to disprove" that this is what she was trying to do.

A spokesperson for Devon and Cornwall Police said: "Following the cancellation of Padstow Christmas Market we received complaints from a number of traders about possible fraudulent activity.

"After conducting enquiries into the matter, specialist officers have discovered no evidence of any fraud or criminality in these circumstances by the organiser. Any dispute over money paid will be a civil matter."

Those impacted by the losses say they are disappointed with the outcome but some will be pursuing legal action nonetheless. Others have managed to recoup their lost deposits through their business insurance. But not all of them can do this due to differing policy terms and conditions, leaving others out of pocket.

One told CornwallLive they were also concerned that a company associated with the event, The Padstow Christmas Festival LTD, applied to be struck off on Companies House in early June. Traders said they were concerned it might impact their ability to launch civil proceedings.

The director of the company has, however, said she's already received written confirmation that it is dissolved and adds there is no money in the company even if people were to launch a civil case. She said this was a dormant company which was set up to safeguard the name Padstow Christmas Festival as she was unable to trademark the name.

A second company set up for the event, with Tina Evans listed as the director, called Padstow Events Limited, has not applied to be struck off but Tina Evans confirmed that too will be dissolved eventually.

Ms Evans, the director of both companies, said: "I have now been investigated by the fraud squad and Barclays Bank fraud team and have been cleared by both. To my knowledge, and I am the only director, there has been no attempt on my part to have Padstow Events Ltd struck off from Companies House.

"However, there is no money in the company so I’m afraid civil action would serve no purpose. Once again I apologise unreservedly for the cancellation of the festival but I made the right decision at the right time so as not to incur any more losses."

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