WA event suppliers owed $3m by festivals including Southbound
A lacklustre summer in WA has seen events suppliers owed close to $3 million from September, with some facing bankruptcy, according to The West Australian.
Events Industry Association of WA President Cassandra Brennan told the paper, “I’ve spoken to one [creditor] who has had to sell his house, another guy who has had to borrow money from his family and several who are facing going bankrupt because they simply cannot continue.”
One of those owing money was the Southbound Festival which, returning for its 12th year between December 27—29. Its acts included Peking Duk, San Cisco, Nina Las Vegas, Peaches, Thundamentals and Tired Lion.
According to a post on the festival website after the event, it drew 10,000 people and injected $1.8 million into the Busselton region.
Southbound Festival Pty Ltd has now reached a deed of arrangement with most suppliers to only be paid some of what they are owed.
Southbound Festival Director David Chitty confirmed, ”The company is hopeful of reaching agreement with the remainder in the near future.”
The West Australian also reported that two suppliers are taking legal action against Event Agency Australia (EAA) which put on the Australian debut of the 50-tonne fire-breathing robotic spider spectacle Arcadia between November 23—27 a few months after it played at England’s Glastonbury Festival.
It drew 40,000 to Perth’s Elizabeth Quay, with part funding of $275,000 from Tourism WA and the Department of Culture and Arts.
Arcadia used a number of Australian and overseas EDM acts including Leftfield and Alison Wonderland as part of the show, some performing from within the spider.
Boomtik Events, which claims to be owed $40,000 from supplying eleven music acts and video productions for the event, has applied to wind up EAA.
Reece’s Hire which allegedly provided over $50,000 for scaffolding, marquees and stages at Arcadia is suing EAA for $140,376.59 for services additionally provided to other events.