The company behind Liverpool's "chaotic" music festival has gone into liquidation.
Problems at the festival
The Hope & Glory Festival, which 12,500 people attended, was hosted in Liverpool's St George's Quarter in August of this year.
Festival-goers reported the event as being hugely overcrowded with long waits for artists - some of whom, including Charlotte Church, were axed at the last minute.
Police were called in to help alleviate the overcrowding by opening a second entrance to the festival on the first day - as the main entrance had long queues with poor access to toilets, drinking water and food.
Headliners, James, did perform but lead singer Tim Booth apologised to his fans multiple times for the "chaos of the events".
Further acts such as Reverend and the Makers, Tom Chaplin and the Lightning Seeds also apologised via social media, and ended up performing in alternative venues for fans who had missed seeing them at the event.
The last day of the festival, 6 August, was cancelled completely due to safety concerns. At this stage, the organisers "accepted ultimate responsibility" and "profusely apologised to the public".
The cancellation was announced on social media. It was followed by a post criticising the Production Manager and providing his email address for complaints to be directed. This was widely dismissed by festival attendees and the bands booked to play as an unprofessional move by the organisers.
Insolvency firm Butcher Woods has been appointed to oversee the liquidation. It is believed that 32 creditors, including Liverpool City Council, are owed a total of £888,984. A spokesperson has said that the council is "seeking recovery of costs associated with the clean-up operation", as well as holding an independent review into the operational detail of the festival. They say that "any lessons learned will be implemented for future events run by outside organisations."
Other parties affected include ticket-sellers Eventbrite and Skiddle. They have both given full refunds to people with tickets for the day that was cancelled, and a 50% refund for those with a weekend ticket.
Eventbrite had already paid the festival organisers the funds from ticket sales, but are now "aggressively pursuing Hope & Glory" to get the money back.
Director of Skiddle, Ben Sebborn, has said that despite attempts "to co-operate with the festival owners, it became clear that our customers would remain out of pocket unless we intervened."
He also stated that it was "very unlikely that Skiddle will receive reimbursement from the festival organisers."
This might also be said for most of the creditors awaiting their share of £888,984. Hope & Glory's assets are not expected to cover the amount lost, so many creditors will not receive payment.
It is believed that restructuring was not an option for the company, especially after the severe damage to its reputation. However, if your company is in financial distress there are several options you can take including entering administration or a Company Voluntary Arrangement (CVA).