Clubs and promoters using Festicket predict huge losses as company falls into administration
Clubs and promoters using the Festicket ticketing platform are predicting considerable losses after officials recommended the company enter administration.
The business, which claimed to be the world’s largest resource for finding and booking music travel packages, had deals with more than 1,000 events in over 50 countries, and since 2012 had sold products to more than 800,000 people.
At the end of last month, a moratorium was granted, allowing 20 days for the failing firm to identify potential buy-outs, avoiding full collapse, during which no legal action could be taken by creditors. This has come to an end early due to a lack of bailout opportunities, triggering insolvency proceedings wherein debts are calculated, along with cash reserves and assets that can be sold, before those owed money are told if and when revenue will be recouped.
Festticket clients are said to include TimeWarp, Ibiza’s Amnesia and Cova Santa, Secret Project Amsterdam, ION Festival and Epizode in Albania, Primavera Sound Los Angeles, Morocco’s MOGA, Fort Festival in Spain, and Gilles Peterson’s Worldwide in France.
In the UK, Bristol’s Motion nightclub has issued a statement via social media citing more than £300,000 in outstanding payments owed to promoters and the venue, and a lack of clarity as to whether this will be paid.
Hospitality in the Woods 2022, due to take place this weekend, announced its cancellation on 6th September, citing industrial action on rail services, but ticket holders have expressed anger at the lack of refunds following Festicket’s collapse.
It remains unclear what the impact will be on events still due to take place that were using the platform for ticketing. Consumer website Checkaco is reporting several instances in which people have bought but not been issued with tickets at the time of the collapse, while revenue owed to promoters, in some cases, may be needed to cover production costs.
Event Genius, a subsidiary acquired by Festicket in 2019 specialising in ticketing and sales technology, has issued an update to partners confirming it has come to an agreement for ticket exchange service Lyte to take over certain assets “including the technology platforms and employee contracts”.
“In parallel, we are in a process to wind down the existing business, which includes the appointment of an administrator to determine what monies will be on-hand to pay out unsecured creditors and promoter obligations. You will be hearing more on that process from us soon,” Event Genius said.
The news comes during an already difficult time for both club and live music sectors. Last week, DJ Mag reported on the UK industry’s calls for immediate government support to help businesses with energy bills as overheads continue to spiral, threatening the survival of many venues.
DJ Mag has approached Festicket for comment