Attraction announces it is shutting down nine days before Christmas after financial backer pulls out

It was blighted by accusations – mostly completely unfounded – of tipsy Santas, smoking elves and biting reindeer. Now the Christmas attraction the Magical Journey has hit the buffers after a financial backer pulled out.

The experience in Birmingham announced on its website that it had shut up shop with Christmas still nine sleeps away, depriving hundreds of youngsters of a festive treat and leaving scores of employees without a job.

A statement on the attraction’s website said: “We are really sorry to have to tell you this, but as of [Tuesday] the Magical Journey, based at the Belfry, Sutton Coldfield, will no longer be in operation.

“We are truly sorry. After all we’ve been through having to shut down in the final week is devastating … We are very sorry to have to break the news like this but we have explored all our options, and the situation leaves us with no alternative other than close the Magical Journey.”

The attraction, which has creative input from the celebrity designer Laurence Llewelyn-Bowen, opened with a fanfare last month but had to quickly shut again after a flurry of reviews from disappointed customers – and baseless attacks by many who had clearly not visited.

Organisers admitted that they had opened before they were really ready. They ironed out the problems, threw open the doors again and the vast majority of those who have visited in recent weeks seemed satisfied.

“Although we had quite the time of it in the press and on social media, feedback was great with over 600 four- and five-star reviews,” the website statement said. “However, today a key financial backer has dropped out leaving us in the lurch. We have tried desperately over the last few hours to find a replacement but to no avail.”

Llewelyn-Bowen said he was “extremely surprised” after finding out on Twitter the Magical Journey had closed.

He said: “It’s absolutely shocking. We found out by Twitter. Everybody was in bed feeling Christmassy and now we are not feeling very Christmassy at all. I was really impressed with the way they addressed all the issues the first time around and the energy and resources that went into it so I’m extremely surprised the towel’s been thrown in at this stage.

“I feel appalling it is not the happy experience I really want it to be. I feel extremely sorry for everybody let down in the next nine days and also for the staff who worked on the frontline.”

Llewelyn-Bowen said he had been commissioned to create some design concepts for the experience but was not involved in the management and had not provided any financial backing. “I feel very much I was the designer and I’m a very public face so people are cross with me,” he said.

The presenter added that he would be donating his fee, the amount of which he would not confirm, to a Birmingham children’s hospice and said: “I do not want to make any money at all out of this experience.”

When the Guardian visited at the end of November staff were working hard to make sure visitors had a great time.

A myth-busting section of the event’s Facebook page tried to put to bed some of the wild allegations that attracted a slew of negative headlines. It accepted there were problems such as the train, designed to whisk visitors around the winter wonderland, breaking down. It admitted that elves may have been spotted smoking – but said they were in the staff rest area at the time.

It denies that a child had been bitten by a reindeer. “Our reindeer enclosure is safe with our elves supervising it. Reindeer are herbivores and lack bottom teeth – they won’t try to bite you because they can’t.”

Santa was not seen boozing or swearing. “Honestly?” says the myth-buster. “We can’t believe the papers picked this up. It came from a joke Facebook post.”

Disappointed visitors took to the attraction’s Facebook page to express their disappointment. One woman posted: “Our baby girls first Christmas memories are RUINED!!!!”

Another asked: “How are parents who have told their children about the event, going to explain the cancellation? Should be ashamed.”

The attraction’s homepage gives details of how disappointed visitors can get refunds.