Six-figure debts for firm behind student festival Beach Break Live
THE company behind this year's Beach Break Live festival at Pembrey Country Park went into administration with an estimated £611,876 to unsecured creditors, The Post can reveal.
The former operator of the student festival, Student Seed, has gone into administration and the assets and business of Beach Break Live have been sold in a previously planned administration deal, a report has revealed.
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Abandonman on the main stage at this year’s Beach Break Live event at Pembrey Country Park
The last festival in June attracted around 17,000 students to see acts including Dizzee Rascal and Friendly Fires, despite the wet conditions.
However, this was around 8,000 short of the figure bosses had hoped to attract.
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The business behind the festival, Student Seed Ltd, went into administration on August 3, the same day it was sold to director Ian Forshew through another limited company, Seed Events Ltd. Now it has emerged the firm went into administration with six-figure debts.
The administrators, Cowgill Holloway Business Recovery, confirmed: "There are no preferential creditors as employees were transferred to Seed Events Ltd. A total of £611,876 is estimated to be owed to unsecured creditors."
It is not believed that any local suppliers are owed any money by Student Seed and Carmarthenshire Council, which owns the country park, has confirmed it has been paid for the park's use.
The administrators have estimated that there will be sufficient funds for a distribution to creditors, but the amount cannot be confirmed until the collection of the company's book debt has been completed.
It is understood there are trading expenses, creditors and liabilities in respect of PAYE and VAT to the taxpayer.
Jason Mark Elliot, of Cowgill, was appointed administrator.
He said Student Seed Ltd "relied heavily on the weather".
It had experienced an increase in costs in the last year which had been "exacerbated" by the revenue for this year's festival being "much lower than anticipated".
However, a spokeswoman for the music extravaganza said the festival would be returning in the future despite the collapse of Student Seed.
She said: "Beach Break Live is not bankrupt, however the company that was behind the festival has gone into administration. To safeguard the future development of the event, protect suppliers and to retain the identity of the festival, Ian Forshew, the original founder and his partners, recently bought Beach Break Live from the old company."
shaun.greaney@swwmedia.co.uk
Comments
by Jiffy
Monday, September 10 2012, 1:26PM
“According to this article, the festival was a huge success:
http://tinyurl.com/d2vhjdq
They are already selling tickets for next years events. They are demanding a £40 deposit, so Ian Forshew won't be going bust.”
by Dan01
Monday, September 10 2012, 12:30PM
“Your dead right there Stork. But its happening all the time across the country. Companies of all sorts go into adninistration with massive debts. The directors seem buy all the assets of the old company and start trading under a new name and and they are up and away as if nothing had happened. But nobody cares about the creditors. The new company very often ends up later in administration and the whole cycle will start again, leaving even more creditors holding the baby. Crazy!”
by Stork
Monday, September 10 2012, 11:44AM
“So, will there be a Beach Break Live 2013 ?
There were a lot of local people who were against BBL 12, and I assume there are a lot of non local business people who wish they had never heard of this event. The company has gone through for £600 k, and I doubt there are many company assets for the creditors to pick through.
If I was a creditor, I don't think I would want to be involved with BBL13 run by a company who let a company go through, then open up under a different name, and it's business as usual !”