Fresh details have emerged about the collapse of the company behind Juicy Festival and Timeless Summer Tour, with liquidators revealing that the company’s inability to secure a liquor license was only part of a broader financial downfall that left the business unable to refund ticketholders or pay its creditors.
Thousands of concertgoers have been left out of pocket after Juicy Fest Limited was forced into liquidation.
Chris Lynch Media first revealed the scale of the fallout, with frustrated ticket holders still searching for answers as the company behind the event went silent.
In a newly released report on the Companies Office’ website, Blacklock Rose, the appointed liquidators, disclosed that Juicy Festival’s financial troubles were compounded by prepayments to artists and venue hosts, as well as a failure to secure alternative funding after the festival was deemed unviable.
Liquidators, Garry Whimp and Benjamin Francis said the company’s bank accounts have been frozen, and a review of Juicy Festival’s Xero accounting records is now underway.
“The Company was incorporated to operate a music festival in multiple locations in New Zealand,” the report said. “The festival ran into difficulties leading to its postponement, cancellation, and then the liquidation of the Company.
“The decision to cancel the festival meant the company forfeited a large amount of money paid to host events and to artists, leaving it unable to meet financial obligations,” the liquidators wrote. This, combined with an absence of revenue from ticket sales and a lack of contingency funding, left the company unable to cover outstanding debts.
The report also confirms that thousands of ticketholders remain out of pocket, with little indication of whether they will receive any refunds.
While ticketholders are classified as unsecured creditors, they were not included in the liquidators’ initial list of known creditors.
“We annex a schedule of creditors,” the report states. “Please note that customers who have purchased tickets are also unsecured, however, as these people are individuals they have not been listed in this schedule. They are still required to submit creditor claim forms.
“The director advises that the Company was unable to obtain a liquor license, making it unviable for the festival to go ahead,” the liquidators said. “This led to the shareholders resolving to liquidate the company.”
A meeting of creditors is set to be held, with liquidators expected to outline the next steps and field questions from those affected. While it is still too early to determine how much, if any, of the company’s assets can be recovered, the report suggests that further investigations into Juicy Festival’s financial affairs may reveal more details about potential recoveries.
“The liquidators are seeking to determine what assets are available,” the report states. “Once this is determined, the liquidators will look to realise these assets in the liquidation.”
The liquidators have also invited any creditors or individuals with relevant financial information to come forward, as any additional details could assist in identifying further recoverable assets.
An investigation into the company is underway by the Commerce Commission following a surge of complaints from ticketholders.
