Administration beckons for struggling festival group

Irish-born music promoter Vince Power has called in the administrators to his Music Festivals Group after experiencing one of his worst summers ever.

Waterford-born Mr Power, who previously ran the Mean Fiddler organisation and the Reading Festival, experienced disastrous attendances at his Benicassim event in Spain and the Hop Farm Festival in Kent in recent months — despite star attractions such as Bob Dylan.

Last June shares in Mr Power’s company were worth 66.5p, placing the company’s value at about £10m (€12.5m). But last Friday they were suspended at just 2.12p.

The company’s prospects looked shaky at the beginning of last summer when it told investors ticket sales for Benacissim and the Hop Farm Festival looked disappointing.

Both turned out to be loss-making despite several star-studded attractions, but while Dylan played in Kent, Mr Power failed to secure The Stone Roses, who would have been a huge draw in Spain, despite high youth unemployment in the country.

In August the company told investors that it expected to make losses and was busy looking for a financial lifeline.

Last week, after the search proved fruitless, it moved for its shares to be suspended.

“The board has in recent weeks pursued a number of different funding options, but it was not to be. We can’t procure the necessary fundings,” said a statement from the company.

Mr Power owns 23% of the company, and, along with relatives, the family stake is over 40%. Last July he propped up the company with a £750,000 unsecured loan.

Industry experts cited the wet summer and a crowded festival market — about 700 a year — as well as the Olympic Games for the demise of his two festivals.

In 2002 Mr Power, who opened the Mean Fiddler in London in 1982, took over running the famous Glastonbury Festival for a three-year stint. He sold the Mean Fiddler organisation in 2005 for £38m.