A controversial former Dundee pubs boss has been banned from working as a company director for 11 years over his use of Covid bounceback loans.
Phil Donaldson, 41, from Broughty Ferry, was a director of MacMerry 300 Ltd when he obtained two UK Government bounceback loans (BBL) worth a total of £100,000.
Mr Donaldson – whose firm previously operated Dundee bars including Bird and Bear, Draffens and Abandon Ship – then transferred the cash to other parts of his business.
According to a ruling from the Insolvency Service, Mr Donaldson “knew or ought to have known” his company was not eligible for the loans, and “failed to ensure the funds were used in the entirety for the economic benefit of the business”.
Phil Donaldson applied for two Covid loans for MacMerry 300
Bounceback loans were given out to help businesses recover from the Covid pandemic.
The loans were administered by banks but backed by the UK Government, meaning taxpayers footed the bill.
Businesses were eligible to apply for one loan worth up to 25% of their turnover, to a maximum of £50,000, and could then apply for a top-up if they had not received the full amount they were eligible for.
However, Mr Donaldson applied for two separate £50,000 loans for MacMerry 300 within 24 hours of each other.
These were paid into separate bank accounts.
The ruling said: “Mr Donaldson failed to ensure the BBL funds were used in the entirety for the economic benefit of the business.
“On June 15 2020, two transfers amounting to £47,739.93 were made from Bank A to another account held by MacMerry, of which £39,500.05 represented BBL funds.
“Mr Donaldson has failed to provide any information regarding the beneficiary of these transfers or how they were ultimately disbursed.”
The Insolvency Service has now banned Mr Donaldson from being the director of a company for 11 years.
It means he cannot be involved in the forming, marketing or running of a company until 2035.
Mr Donaldson declined to comment on the ruling when contacted by The Courier.
Allegations against MacMerry 300
MacMerry 300 faced a series of allegations from current and former staff in 2022 with claims of bullying, sexual harassment, Covid breaches and missing wages at its venues in Dundee, Glasgow and London.
At the time, Mr Donaldson described the allegations as “worrying and sensationalist”, and blamed the union Unite for bringing forward what he called “hugely damaging” claims.
A spokesperson for the firm later committed to a “full investigation” of the claims.
But within months the firm collapsed into liquidation and was then bought by companies controlled by its founders.
The Insolvency Service says the company’s total liabilities at liquidation amounted to more than £1.1 million, of which £100,000 related to the two bounceback loans.
In June, Bird and Bear and Abandon Ship were put up for sale by their current owners.
