In filings, the two entities that controlled the festival — Pemberton Music Festival Limited Partnership and 1115666 B. C.
Ltd. — declared $5 million in assets and $12.5 million in liabilities, with ticket holders listed as having an unsecured claim of $6 million.
High-profile failures like Pemberton and Fyre — which is now facing numerous lawsuits from ticket buyers
and others — could erode consumer confidence, Mr. Geiger said.
Marc Geiger, the head of music at William Morris Endeavor and an outspoken voice in the business, called Pemberton’s collapse “a fraud and a scam”
that could have a domino effect on the industry, hurting smaller promoters the most.
But the collapse of another event, the Pemberton Music Festival in the mountains of Canada, has put the business on edge, with veteran talent agents and promoters warning
that it could have wide implications for the booming festival market.
In April, the investors created 1115666 B. C.
and made it general partner of Pemberton Music Festival Limited Partnership, which controlled the festival.
In a break from standard practice, ticket holders were not offered refunds, but were instead told
that they could “file a proof of claim form as an unsecured creditor.”
Music executives are now aghast over the failure to provide refunds and the maneuvering of investors in the weeks before the festival fell apart.
“This industry thrives on a variety of creative individuals doing things in new and creative ways,” Mr. Hunt said.