THE COMPANY that runs the Hop Farm and Benicassim music festivals yesterday confirmed it was set to go into administration after the firm suspended shares last week.
Music Festivals, which also operates Finsbury Park’s Feis Festival and the newly launched Costa de Fuego event in Spain, admitted on Friday it had failed to raise funds to support its business and would make a loss this year.
Chief executive Vince Power took the firm public on the Aim index last year – making it the first listed festival company – but he saw lower than expected ticket sales for the Hop Farm and Benicassim festivals this year due to wet weather and high-profile music events linked to the Olympics.
The company said it had not yet appointed administrators and that an announcement will be made “in due course”.
Questions over the suitability of Kent’s Hop Farm as a venue were raised last month when the only two concerts scheduled at the park were moved.
Music Festivals has seen its share price plummet from June 2011’s initial public offering price of 67p down to 2p last week.
The company said last month that due to poor trading conditions it expected to generate a “material loss” for the year and that it was seeking to raise additional working capital.
But the firm is not alone in struggling to succeed in the UK festival market.
Sonisphere ditched its UK leg this year, while the promoters of Bloc festival in London fell into administration.
The team behind All Tomorrow’s Parties has pledged to continue putting on events after the firm went into voluntary liquidation in July.