One of the biggest music festivals in B.C. has been cancelled.
Global News has learned that the organizers of the Pemberton Music Festival have filed for bankruptcy.
Documents obtained by Global News show there will be no automatic refunds for tickets as “the festival is now in bankruptcy and has no ability to provide refunds for tickets purchased.”
However, ticketholders may file a proof of claim form as an unsecured creditor with Ernst & Young, which is the festival’s trustee in bankruptcy. However, determining if a refund is applicable on claims from ticket holders will not be known for several weeks.
Refunds may be available to ticketholders from third parties if tickets were purchased using a credit card.
As each bank and credit card issuer has its own specific policies, ticketholders can contact their bank or credit card issuer directly to determine whether a refund can be obtained.
Documents also show the festival owes $2.5 million USD to its creditors. Festival directors determined they were unable to meet the festival’s financial obligations as a result of decreased ticket sales and increased operating losses.
Organizers say they have collected $8,225,000 in ticket revenue so far this year. The budgeted expenses stand at $22,000,000.
They say the festival has been significantly impacted since 2015 by a weakening Canadian dollar relative to the U.S. dollar.
Shareholders and investors funded several million dollars to cover the festival’s cash losses over the last three years.
Last summer, it was revealed a group of security guards were still owed money for working at the festival the year before.
Currently, the festival’s website says all but their $369 regular tickets are sold out.
The summer camping music festival was supposed to take place July 13-16.
This year’s lineup included such high-profile performers as Muse, Chance the Rapper, A Tribe Called Quest and dozens of others, including Canadian duo Tegan and Sara, who addressed the cancellation by issuing an apology to disappointed fans who were expecting to see the band live.
The Pemberton Music Festival was first held as a three-day event in 2008.
It was not held for five years between 2009 and 2013, resuming in 2014 under different ownership.