Music Festivals, the company behind the Hop Farm and Benicassim festivals, has called in administrators after suspending shares from trading, Music Week has reported.
The firm said in a statement yesterday: “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 generate additional working capital last month whilst also anticipating a material loss for the year as a result of poor trading conditions.
However, Music Festivals has not been able to secure the additional funds, with the board requesting yesterday (September 25th) that trading of its ordinary shares be suspended after their price dropped 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: Hop Farm, Feis Festival, Benicassim in Spain and Costa de Fuego, which launched in Spain this year.
At the time of the share freeze, the group stated that it was hoping to pursue several different proposals to achieve the necessary funding, with a further announcement expected shortly, according to eFestivals.
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