The company behind the controversial Lapland New Forest Christmas theme park is to go into liquidation.

The move, by the company's director Victor Mears, from Brighton, means that thousands of people may not get a refund for their tickets for the park dubbed a “winter blunderland”.

People paid up to £30 each to visit the site on the Hampshire-Dorset border which promised to be a snow-covered winter wonderland.

But families arrived to find a few sickly-looking animals and a fairground in a muddy field where customers queued for hours to pay £10 to see a Santa who lifted his beard to wipe his mouth while bewildered children sat on his knee.

The park shut after more than 5,000 people complained to Trading Standards about the “attraction”.

Ivan Hancock, Dorset Trading Standards divisional manager, said: "Members of the accounting and consulting firm Grant Thornton UK LLP have met with Victor Mears.

"Mr Mears has asked Grant Thornton to take steps to place his company into creditors' voluntary liquidation (effectively close down the company and handle any claims).

"We understand that two partners at Grant Thornton will be appointed as joint liquidators in due course.

"Once they have control of the company, customers will have the opportunity to lodge a claim against Lapland New Forest Limited."