End-to-end festival experience and ticket supplier Festicket has filed a moratorium with Companies House, a measure that according to UK Government guidance gives struggling businesses formal breathing space in which to explore rescue and restructuring options, free from creditor action.
The moratorium, which commenced on 24 August, means that except in certain circumstances, no insolvency proceedings can be instigated against the company during the moratorium period. It also prevents legal action being taken against a company without permission from the court – with the exception of employment tribunal proceedings.
Festicket declined to comment on the move but a source told Ticketing Business: “The company still has to pay its ongoing debts during the moratorium e.g. rent & employee liabilities, and also has to appoint someone to oversee the process i.e. a licensed insolvency practitioner, whose main job is to monitor and then evaluate whether an rescue plan will work.
“It is my understanding that the company directors are in exclusive negotiations with a third party, and this gives them some time (initially 20 days but this can be extended) to assess the situation and to potentially develop the plan for the company as a going concern.
“Unfortunately, for current clients and staff, the business may be considered beyond rescue.”
Recent years have seen Festicket expand its international footprint, making senior appointments in the US where its clients include Coachella, and branching out into streaming with the launch of Festicket Live and a partnership with Clubbing TV.
Festicket was founded in 2012 by Zack Sabban and Jonathan Younes. Initially launched as a festival discovery website providing a guide to around 16,000 festivals, Festicket was evolved into an end-to-end festival experience service providing add-ons including travel and accommodation packages.
It is backed by a range of investors including Beringea, Edge, Lepe Partners, ProFounders and InMotion Venture and in Autumn 2019 completed the acquisition of Event Genius, and the associated Ticket Arena consumer website and brand.
The development follows taxpayer-backed events ticketing start-up Pollen going into administration after negotiations to save the London-based company failed.