A Lapland theme park that sparked outrage from parents who complained that it looked nothing like the arctic home of Father Christmas has been closed, police said yesterday.

Trading standards received more than 2,000 complaints about Lapland New Forest, which promised to make "Christmas dreams come true for children of all ages". Parents had scheduled a protest tomorrow at Matchams Leisure Park, near Ringwood, Hampshire, the site of the "mini Lapland", to demand their money back.

Visitors dubbed the park a "glorified car boot sale" after they said the ice rink was broken, log cabins resembled B&Q sheds, huskies were found chained to the ground and "going berserk", and a "tunnel of light" turned out to be a line of trees with a few strings of fairy lights.

The "bustling Christmas market" resembled a white marquee with four small stalls and a few piles of boxes, parents said.

Two elves and a Father Christmas were reportedly attacked by furious parents, who had spent up to £100 for entry for a family of four, and then spent hours waiting in queues. Tickets cost £30 for individuals, £25 for each person for families of four or more, and £10 for children under two years old.

They were also charged extra for food, fairground rides and even a photograph with Father Christmas. One child allegedly found him smoking a cigarette behind the grotto.

A spokesman for Dorset police said: "We have been told that the Lapland New Forest attraction has this morning been closed permanently and that contractors and stall holders are leaving the site."

The spokesman added that police were called yesterday morning over fears there would be a breach of the peace because some contractors had alleged they had not been paid. He said no one was arrested and police did not close the site.

Several networking website pages have sprung up to lambast the Dorset Lapland, which is not connected to another themed-Lapland in Kent. Facebook groups include photographs of the muddy site, a bare-looking grotto and distraught children. "The so-called gorgeous huskies were going berserk chained up!" wrote one contributor.

"The face painting consisted of a red nose and black lines for whiskers, the girl doing it said she had never done face painting before," said another. "Hardly anything that was advertised was there ... I knew it was bad when even the catering staff were moaning."

The Lapland website has appeared inactive most of the week, and the organisers have declined to speak to the press.

However, speaking before the site was closed, Henry Mears, the advertising manager, blamed the complaints on a small number of troublemakers and said the ice rink had been fixed. "Like all people they like to get into queues and just generate a bit of aggravation," he said.

He recently added: "Everything that could go wrong did go wrong at the weekend. The weather wasn't in our favour. But on the advice of our solicitors we will not be talking to any press. It is disgusting and scandalous what they have done as it is stopping other people from enjoying themselves."

Few visitors have been to the attraction in recent days, after irate parents vented their fury on national television. Yesterday the entrance was coned off with a "closed" sign in place.

· This article was amended on Friday December 5 2008. Ringwood is in Hampshire, not Dorset. This has been corrected.