The Music Festivals PLC board has resolved to call in administrators after suspending shares from trading yesterday.
In a statement further to the suspension yesterday, the the Hop Farm and Benicassim company said:
“The Board of Music Festivals announces that further to the announcement made on 21 September 2012 the Company has today resolved to appoint an administrator and once that appointment has been agreed a further announcement will be made in due course.”
The group announced that it was looking to raise additional working capital last month along with expectations of a material loss for the year due to poor trading conditions.
Music Festivals hasn't been able to secure those additional funds, with board requesting yesterday that trading of its ordinary shares be suspended after their price dipped to 2.13p after starting at 66.5p in June 2011 when the group floated on the stock market.
Music Festivals owns four summer music festivals in total: Hop Farm, Feis Festival, Benicassim in Spain and Costa de Fuego, which was launched in Spain this year.
The group said at the time of the share freeze that it was hoping to pursue a number of different proposals to gain funding, with a further announcement expected shortly, according to eFestivals.
Hop Farm planned Leonard Cohen gigs – the only two in the UK this year- were moved to Wembley Arena a month ago “due to unforeseen circumstances.” A statement from Vince Power said the move had “nothing to do with the suitability of Hop Farm as a venue.”
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