August 7, 2005
B.C. tall ships festival files for bankruptcy protection
A tall ships festival in British Columbia has filed for bankruptcy protection, after generating a debt of more than $200,000 to performers, vendors and ship owners.
Organizers of the Sea Vancouver Festival, which ran from July 6-10, filed the notice with the province’s Office of the Superintendent of Bankruptcy Wednesday, after organizers admitted that low ticket sales and attendance have made it impossible to pay all their bills on time.
“The primary reason for the current situation is that ticket sales, and therefore revenues, did not meet expectations,” the society that organizes the festival said in a release.
Approximately 20,000 people bought tickets for the five-day festival, which featured musical concerts and other cultural events in addition to the presentation of visiting tall ships. But the number was about 8,000 people short of what organizers said they needed to break even.
Creditors include:
- Music management company S.L. Feldman and Associates, which says it is owed about $47,000 for arranging performances by artists like the Cowboy Junkies.
- Event vendors, including a tent-supply company that is owed $100,000 for its services.
- Tall ship owners, some of whom have received only 10 per cent of the more than $7,000 US in fees they requested for sailing their ships to Vancouver for the festival.
- Small-time performers, who were contracted to play at various venues throughout the event.
“As an agent, it’s frustrating and it’s embarrassing,” Shaw Salzberg, a spokesperson for S.L. Feldman and Associates, told CBC News. “But not just as an agent – I think for the city it’s embarrassing.”
“At the very least, this is a breach of contract or a severe straining of a contract,” said musician Ben Young, who claims he is owed $400 for two days of singing sea shanties at the festival. “I hope that we get paid eventually.”
Festival chair Janice Podmore has said she doesn’t know when the various creditors will be paid, adding that while there is still money in the festival’s account, the court action means it is on hold.
Organizers say they need a few weeks to tally up the festival’s financial situation and figure out which debts they can pay and when.