Australian-based promoter and event company Abstract Entertainment has entered voluntary liquidation and owes close to A$700,000 (£390,000/€453,000/$545,000) to 95 creditors.
The firm, which owes money to ticketing companies, musicians, radio networks, venues and promoters, has largely pointed to COVID-19 for its financial issues, which have led to the self-imposed wind up.
In the Report to Creditors, seen by The Music Network, the company said the level of ongoing uncertainty surrounding the rescheduling of concerts and shows means Abstract Entertainment will not recommence trading operations during liquidation.
However, the company’s Abstract Touring subsidiary is continuing trading after recently announcing the Belinda Carlisle Tour of Australia for February 2022.
The firm noted in the report that under normal circumstances, it would receive royalty fees and commissions from its related entity Abstract Touring. In this instance, however, Abstract Entertainment incurred various expenses associated with the planning and promotion of concerts and shows which were planned for 2020.
Meanwhile, all sale and pre-sale funds were held by a ticketing agency, and could only be released once the concert or show had been held, which did not happen last year due to the pandemic.
It said: “Due to domestic and international Government restrictions implemented following the COVID-19 pandemic, the concerts and shows were all delayed and/ or cancelled. As a result, the company was unable to generate revenue and has since been dormant.”
Aston Chace Group, which is the liquidator, has been paid A$10,000 to cover the initial remuneration and expenses associated with the liquidation of the company.
Its 95 creditors are owed $696,382.12, with the largest, Jally Entertainment, owed A$106,938.51. In addition, Ticketek is reportedly owed A$1,196, while TEG Digital is missing A$4,400, Ticketmaster is down A$3,850 and Eventfinda AU is owed A$3,531.
Other large creditors include the Australian Radio Network (ARN), which is down A$32,338.80, the Daily Press (A$100,711.90), Estellar Publicity and Promotions (A$16,970.22), Nine Radio (A$23,716), Gold Coast Community Radio 94.1FM (A$6,886) and APRA (A$9,946.49). Musician John Waters is also owed A$23,716.
The company’s sole director, Rocco Ortuso, said that he and his spouse may also have a claim against the company in relation to unpaid employee entitlements.