Festicket, the UK-based festival ticket booking service, is searching for a “rescue deal” after entering a period of moratorium.
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Launched by the UK government to help businesses recover from the pandemic, a “moratorium” is a legal procedure that gives businesses a 20-day respite period, protecting them from creditors and allowing them to pursue a rescue plan.
Festicket filed a moratorium earlier this month and was listed by Companies House last week, stating that the period began on August 17 and will continue until September 15.
While Festicket’s future is currently uncertain, the platform could extend the period of moratorium after September 15 if no rescue deal is found.
The Ticketing Business was told by a source at Festicket that “the company still has to pay its ongoing debts during the moratorium”, which includes rent and employee liabilities, as well as the appointment of a new staff member to oversee the process.
“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,” they said.
“Unfortunately, for current clients and staff, the business may be considered beyond rescue.”
The ticketing platform, founded by Zack Sabban, Jonathan Younes and Jerome Elfassy in 2011, has previously swallowed several other companies including Event Genius and Ticket Arena which were both acquired by Festicket after its inception.
Originally reported by MixMag.