Musical company

Lost Paradise: Festicket ticket office goes bankrupt

An event management company that sold tickets to several top Australian festivals has collapsed.

UK-based Festicket started work earlier this month.

Festicket attempted to prolong her disappearance as long as possible by imposing a moratorium, which meant that under British law no legal action could be taken against her for unpaid debts.

The moratorium rule is intended to give companies some time to resolve their financial problems and possibly restructure the business.

However, Festicket still couldn’t afford non-moratorium debts like rent and worker salaries, forcing the moratorium period to end on August 30.

Administrators were appointed shortly thereafter.

The company was launched in 2012 and has sold packages to well-known Australian music events in Melbourne, Perth, Sydney, Brisbane and the Gold Coast.

Festicket sold tickets for the Lost Paradise concert in NSW on New Year’s Eve. After the company went bankrupt, some affected customers found their payment plans had been “suspended” and were unsure of what that meant.

In a statement to news.com.au, Finely Tuned, promoters of the Lost Paradise festival, revealed they knew Festicket was on the verge of collapse.

“Finely Tuned had already moved to another ticketing company in anticipation of the Festicket pullback,” they said in a statement.

“Lost Paradise is moving forward and is unaffected by this.

“All tickets are valid and the event should still go exactly as planned. Ticket buyers who have a payment plan have had their payments suspended – but payments will resume shortly, sales finalized and tickets honoured.”

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According to a report filed with the UK financial regulator, Companies House, Festicket had to end its moratorium because “the company is unable to pay the moratorium debts (and) the pre-moratorium debts for which the company does not have a payment holiday during the moratorium. ”.

Another report filed later said: ‘The moratorium is no longer likely to result in the rescue of the business as a going concern. The board of directors decided on August 29 that the company should initiate administrative proceedings and that a notice of intention to appoint directors should be filed”.

A creditor, John Gyngell of North Brewing Co, supplied drinks to Festicket events and told The Drinks Business he lost £25,000 (AU$42,000) as the business collapsed.

The bankrupt company was partially bought out. Another ticketing company, Lyte, acquired a division of Festicket including its technology and employee contracts.

At its peak, Festicket claimed over a million customers had booked events through its platform as well as a network of 1,200 festival partners and 5,000 suppliers.

In 2019, the company acquired two other booking giants, Event Genius and Ticket Arena, earning it a place in Deloitte’s Financial Times 1000 and Technology Fast 50 lists later that year.

He also went through a series of fundraisers, generating millions of pounds

The company raised £4m (AUD$6.8m) through a funding round from Edge Investments in 2019, just months after announcing a Series D funding round of $9.13m. British Pounds (A$15.6 million) in November 2018.

Festicket also raised £3.8 million (AUD$6.5) on CrowdCube, a crowdfunding platform, also in 2019.

The live music sector has suffered globally over the past two years amid Covid-related restrictions, lockdowns and travel bans preventing touring.

News.com.au previously raised concerns about another Australian ticketing company, One World Entertainment.

Dozens of customers say they haven’t received a refund for a canceled event.