For Festicket, the largest platform for discovering and booking festival packages, the future seems uncertain as the company filed a moratorium. According to Companies House, the filing was submitted on Wednesday, 24th August.
In UK law, the moratorium translates into an authorized temporary suspension of legal obligations, such as financial liabilities. During this period of debt relief, creditors cannot take any legal action for their debts, which gives companies some breathing room for a plan.
As reported by TheTicketingBusiness, an insider said that despite the moratorium, Festicket still needs to pay certain financial obligations, such as rent and salaries.
“It is my understanding that the company directors are in exclusive negotiations with a third party, and this gives them some time (initially 20 days but this can be extended) to assess the situation and to potentially develop the plan for the company as a going concern.”
Festicket is a UK-based company founded in 2012 by Zack Sabban, Jonathan Younes, and Jerome Elfassy. Over the years, Festicket garnered a large sphere of partners, working closely with AEG, Coachella, Clubbing TV and Audience Republic.
This ultimately made it a go-to supplier for general admission passes, VIP tickets and various add-ons, such as travel and accommodation.
Zack Sabban recently took a step back from the festival ticket platform to focus on his metaverse company, RLTY. However, he remains in the company as a board member and non-executive director. Reshad Hossenally, Festicket’s chief operating officer and founder of Ticket Arena and Event Genius followed the same steps when he backed off from all three companies in June.
This event follows Pollen’s recent filing for administration, suggesting post-pandemic struggles are still affecting the events industry.