Companies owned by Australian concert promoter Andrew McManus are facing imminent collapse after it was revealed that the company formerly known as McManus Entertainment Pty Ltd had been placed under voluntary administration. The news comes amid reports of the cancellation of the Summadayze Festival, a result of the Future Entertainment company’s insolvency.
Back in July, McManus changed the name of his primary company from McManus Entertainment Pty Ltd to Irving Road Pty Ltd, likely in an effort to save face once the company reached inevitable ruin. According to documents obtained by Tone Deaf from the Australian Securities and Investments Commission (ASIC), the newly christened company is under administration as of 3rd September, with creditors given until 12th September to prove they are owed money.
The touring mogul has had a tough year, having lost planned tours for Aerosmith and Fleetwood Mac to the organisers of Stone Music Festival and rival promoter Live Nation respectively, and enduring subsequent legal disputes over the events. In addition, McManus was also part of a dispute involving the organisers of Stone Music and Tone Deaf and lost a stadium deposit of $50,000 after failing to secure the Fleetwood Mac gig, for which, reports Tone Deaf, McManus sued.
Following on from these losses, McManus put his opulent Toorak mansion on the market for a third time, at an asking price of $10 million. McManus’ joint venture with Universal Music, Sydney Resolutions Pty Ltd, of which he owns 50%, has also been placed under voluntary administration.
Fiscal travails are nothing new for the oft-troubled promoter. Back in 2011, Music Feeds reported on the promoter’s failure to deliver funds to Queensland flood relief after promising to donate all profits from his Ragamuffin Festival to the Premier’s Flood Appeal.
The Age also reports that the current Irving Road Pty Ltd was initially known as Andrew McManus Presents (Australia) Pty Ltd, which came into being after McManus transferred assets over from the failed Andrew McManus Presents (International) Pty Ltd, which subsequently changed its name to Miz Pty Ltd in July 2011.
The practice of a company transferring assets into a newly established company after financial collapse is known in the business world as “phoenixing.” The name comes as a result of the new company, free of its previous incarnation’s debts, being able to “rise from the ashes” and begin anew. There is however no documentation to suggest that McManus is planning on “phoenixing” again at this time.
The revelations of McManus’ continued pecuniary troubles appear to be symptomatic of the current climate in event promotions. His story joins those of Future Entertainment, Fat As Butter promoter Mothership Music Pty Ltd, and the recently announced cancellation of Pyramid Rock Festival 2013-14 by promoter Inversion Productions, as indicators that these are tough times for creditors in the touring industry.
(Via ToneDeaf)
