News

Festicket collapse will lead to “detrimental losses” for clubs and promoters

todaySeptember 16, 2022 3

Background
share close

Clubs, promoters, and festivals could face “detrimental losses” as UK ticketing platform Festicket teeters on the brink of collapse.

The platform – which provides tickets for huge events including TimeWarp, Amsterdam Dance Event, Primavera Sound, and Rolling Loud – entered a period of moratorium in August and was granted just 20 days to pursue a “rescue deal”.

That period came to an end yesterday, September 15. Festicket will now no longer be protected from creditors and falls into administration with no further financial solutions.

As a result, clubs and promoters have expressed concerns over ongoing financial struggles with the company, including Bristol’s Motion, who yesterday posted a statement regarding the ticketing company.

Read this next: Festicket pursues “rescue deal” as it enters moratorium

“As you may know from purchasing tickets through our website, Festicket and Ticket Arena were our ticketing partners for Motion and have been for the last 6 years,” they explained.

“Our event partners and Motion are owed in excess of £300,000 due to not receiving payments for tickets sold through their platforms. Last weekend we had an event which sold out at 3000 tickets, the promoter still hasn’t received all of their ticket funds for the event.”

Motion added that these funds are “vital” for covering staff wages, artist fees, and expenses needed that are currently “leaving promoters and venues out of pocket”.

“We are now being told that key assets are being sold off and the debt stands to be “liquidated”,” they added. “This will cause a huge amount of damage to the events industry that has already had a terrible few years, and many venues and promoters in the UK will be affected by this.”

Read this next: Worldwide FM to “pause” broadcasting amid “financial revaluation” of the station

Elsewhere, ticket holders of UK festival Hospitality Weekend In The Woods – which was recently cancelled due to rail strikes – have not yet received refunds from Festicket. Those who purchased tickets are now expressing outrage on social media.

Festicket replied to some users to let them know that they would “be in touch with all customers for Hospitality In The Woods soon”, though many are uncertain when this could be now that the company has fallen into administration.

Some companies have begun crowdfunding for their survival, including North Brewing Co who sold tickets through Festicket for its debut beer festival in Leeds. The company told The Morning Advertiser: “all money for our future events has been frozen in [Festicket’s] bank accounts, meaning that they can neither issue refunds nor pass the money to us.”

Gemma Ross is Mixmag’s Editorial Assistant, follow her on Twitter

Written by: Tim Hopkins

Rate it

Previous post

0%