Abstract Entertainment in liquidation, owing almost $700,000
Abstract Entertainment is winding up after entering voluntary liquidation.
The promoter and event planning business owes close to $700,000 to 95 individual creditors spanning ticketing companies, musicians, radio networks, venues and promoters.
Its related entity, Abstract Touring, is still trading, and recently announced the Belinda Carlisle Tour of Australia for February 2022.
Abstract Entertainment largely blamed COVID-19 for its deteriorating financial performance and position which led to the self-imposed wind up.
In the Report to Creditors, seen by TMN, the company noted 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. In the meantime, 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, the creditor’s report 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.”
It said the level of ongoing uncertainty surrounding the rescheduling of concerts and shows, and the money it didn’t receive in early 2020, combines to mean the company will not recommence trading operations during liquidation.
The liquidator, Aston Chace Group, has been paid $10,000 plus GST to cover the initial remuneration and expenses associated with the liquidation of the company.
Its 95 creditors are owed $696,382.12.
The largest of these is Jally Entertainment, which is listed as $106,938.51.
Ticketing companies have also been affected with Ticketek owed $1,196, TEG Digital down $4,400, and Ticketmaster listed at $3,850. Eventfinda AU is owed $3,531.
Other large creditors include the Australian Radio Network (ARN), which is down $32,338.80, the Daily Press ($100,711.90), Estellar Publicity and Promotions ($16,970.22), Nine Radio ($23,716), Gold Coast Community Radio 94.1FM ($6,886) and APRA ($9,946.49).
Musician John Waters is also owed $23,716.
The company’s sole director Rocco (Roy) Ortuso, who initiated the liquidation, noted that he and his spouse may also have a claim against the company in relation to unpaid employee entitlements.