Close my Festival Business

Rescue, Recovery and Closure Options for Festival Companies

The UK currently hosts around 1,000 festivals every year, from live music, cooking to arts, and contributes over £1.76 billion to the UK economy through music festivals. The live music industry employs 85,000 individuals, such as promoters, organisers and ticketing agents, and attracts spending from domestic and overseas music tourists. Music festivals can range in popularity and capacity, from Glastonbury, Creamfields and Parklife, to Kendal Calling, Beat-Herder and Truck festival. Micro and budget festivals also contribute to local economies as they drive income to small businesses through music tourism.

According to the Association of Independent Festivals, organisers spend on average £451,500 in festival planning, ranging from £5,000 to £4 million for live music events with a capacity between 5,000 and 70,000 respectively. Committing to a sizeable upfront cost for live music events requires a significant amount of working capital in order to get the festival off the ground in the first place. 

Close your festival company via liquidation

If you are a festival organiser grappling with cash flow problems, this unreliable income stream could lead to the downfall of your business. If your live music or entertainment business is in financial distress, speak to a licensed insolvency procedure to explore how to rescue your festival business.

If your business has no real prospect of recovery as it is out of cash and cannot settle creditor debts, company liquidation may be a suitable route. Company liquidation is a formal insolvency procedure used to settle creditor affairs and close the business. This step must be taken with care as the decision to close your business will impact shareholders, suppliers, creditors, festivalgoers, and the business community situated around your festival sites, such as hotels and restaurants.

“After submitting my '60 Second Test' I received a complimentary Insolvency Options guide packed full of useful information. The team of insolvency specialists phoned me back in less than 10 minutes after reviewing my details and guided me through the next steps. Really helpful! Thank you Sophie!”

Patricia 

 

Contact the Real Business Rescue Team today

Sophie Schofield
Business Debt Expert

There are different types of company liquidation procedures, such as a Creditors’ Voluntary Liquidation (CVL) which may be a suitable route for your festival and events business. This route can only be pursued under the guidance of a licensed insolvency practitioner.

A CVL is a voluntary company liquidation procedure that aims to maximise funds for creditors. Company assets will be independently valued, from fixed assets, such as trailers, staging and production equipment to intangible assets, such as investments and intellectual property. Once company assets are sold and the proceeds distributed to the hierarchy of creditors, as set out by the Insolvency Act 1986, the business will be closed and removed from the Companies House Register.

The liquidation procedure will need to be handled with care by an experienced licensed insolvency practitioner as high-profile cases could rapidly attract negative publicity because of disgruntled creditors. As the director of your festival company, it is your legal responsibility to act in the best interests of creditors and access insolvency support when witnessing the first signs of financial struggle.

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Rescue my festival company

Our licensed insolvency practitioners will be able to assess if your festival company can be rescued through a suitable restructuring strategy, such as a Company Voluntary Arrangement (CVA) or Company Administration.

If your festival company requires a rapid cash injection to enable growth, company finance may be available through competitive lenders working closely with the Real Business Rescue team. We can source a deal that reflects value for money and boosts company cash flow, putting you on track to host a much-awaited comeback festival as we exit from the pandemic.

By facilitating recovery and returning your business to a strong financial position, you can invest in your festival line-up, launch marketing campaigns, and reassure suppliers of your business health. Taking this step can preserve the reputation of your festival and give confidence to both performers and attendees to invest in your festival.

If your festival business is cash poor, however, the company is rich in assets, entering company administration can help realise asset value to generate funds for creditor repayments. If you are under serious pressure from creditors to make repayments, you may stimulate company recovery by taking this route. This can prevent your financial position from worsening and settle affairs with creditors.