11 hours ago
Victoria's Esoteric Festival in voluntary administration owing millions in debt
The future of troubled Esoteric Festival in country Victoria is uncertain unless someone volunteers to buy its parent business, along with millions of dollars of debt.
The multi-day electronic music, arts and lifestyle event, outside tiny Wimmera town Donald, about 290 kilometres north-west of Melbourne, was cancelled in March this year the day before it was to start.
About 11,000 festival goers — including 3,000 volunteers given free tickets — were locked out just before the Labour Day weekend when Buloke Shire Council officers recommended the event's permit be denied due to health and safety concerns.
Now the company behind the eight-year-old event, Esoteric Festival Pty Ltd, has gone into administration owing ticketholders, creditors and employees more than $2.8 million, Australian Securities and Investments Commission (ASIC) documents show.
Worrells Solvency and Forensic Accountants (Worrells) has been appointed as the company administrator.
A Worrells spokesperson said in a statement the company entered voluntary administration on June 11 as a result of this year's festival cancellation.
They say administrators gathering information about the company's financial position are asking creditors for "patience as we work through the next steps".
In a statement to creditors, the administrators say that, unless there is an offer from another party to "restructure the company or purchase the business, [it] will not be in a position to hold further festivals."
ASIC documents show Esoteric Festival Pty Ltd owes employees, ticketholders and contractors more than $2.8 million.
About 8,000 ticket holders who paid between $355 and $375 each are owed a combined total of more than $2.2 million.
Other creditors, including an excavation company, food producers, audio technicians, a lighting company and a carpenter are $540,000 out of pocket.
And the company owes more than $100,000 to its employees in wages and entitlements.
ASIC documents show Esoteric's debts far outweigh its assets.
The company has listed its largest assets as $55,000 in cash in a bank account and a $20,000 lawn mower.
Festival director Sam Goldsmith was contacted for comment.
Brisbane-based DJ Renan Inal, also known as mlDium, was set to play at this year's festival.
He learned of the cancellation when he arrived at the venue.
Mr Inal said he had decided to forfeit his artist fee to support the festival.
"[I'm] noticing a pattern of loss of quality cultural events and feeling for the people who have a stake and have been working with these events, from traveller to local artists.
"[It's a] tragedy to see it all laid to waste from bureaucratic red tape."
