Embattled Peats Ridge Under Pressure To Pay Artists, Staff

Organisers of the embattled Peats Ridge Festival have come under scrutiny today from the Media, Entertainment & Arts Alliance [MEAA] who claimed today that “hundreds” of artists and production crew members have not been paid for their work on the festival over New Years.

The allegations came after theMusic.com.au broke the news that the festival was being wound up last week, with the announcement coming just minutes after key festival staff were notified.

The MEAA's entertainment, crew and sport section director Mal Tulloch said today that those who worked on or for the event “have to be paid what they are owed, and the Alliance is determined to work with everyone affected to chase unpaid monies… It is simply not acceptable for them to be left in debt and struggling financially because a particular promoter fails to budget for employment costs as a priority. As their union we will stand with those affected until we get a fair outcome from this debacle.”

In a statement issued to theMusic.com.au this afternoon Festival Director Matt Grant said that he has been in contact with the union, as well as affected artists and crew, and is “working very hard to find a solution”.

“The process for payment for artists is a legal one,” Grant said, “and the liquidators have been speaking to all creditors to the festival who have contacted them, as we have instructed all festival suppliers to do from the moment we were advised liquidation was the only option facing the festival. I have been openly transparent about what is happening and I have personally communicated with the vast majority of those affected including the MEAA.”

Today Matt Grant told theMusic.com.au that he is currently talking to investors – including other unnamed festival promoters – to save the event. Believing he could trade his way out of financial trouble, he had courted possible backers last year. His said his main focus currently is the search for an investor to save the event – with or without himself.

“The process that I'm going through at the moments is talking to a few people to bail the festival out… up until two days before [the company entered receivership] I was in discussion for an investor to come in. I'd followed all due diligence and the investor was at the festival so it was promising.”

However accountants advised that continued trading would not be possible and that the festival would need to be wound up.

The camping festival, which regularly booked over 200 artists and performers, took place in New South Wales' Glenworth Valley over New Years. The event had attempted to trade its way out of a financial hole incurred in 2007 when extreme weather forced its cancellation. In 2011 the organisers' company went into receivership and a new entity was formed, under the same management, to helm the festival. Most of the existing suppliers and staff had stayed on under the new entity.

Grant said they'd expected $650,000 more in insurance money than they eventually received following the 2007 disaster and it has been a “a really long and challenging process to build the festival back up since then.”

He added, “I believe if I can find someone to come in and back it I can take the company out of liquidation… that would be the best outcome for everyone.”