No formal notice has been given, but the concert has appointed worldwide accounting firm Ernst & Young (E&Y) as the trustee to address the situation.
Ernst and Young reports the 2017 festival had budgeted expenses of $22 million, while revenue to date was $8.225 million. They also report the festival owes its creditors approximately $2.5 million US, or over $3.4 million CAD.
A statement on its website said ticket sales did not meet expectations this year and a weak Canadian dollar caused troubles for the festival as many of its entertainment costs had to be paid in American dollars. The festival reported it had difficulty sourcing talent due to a limited number of artists touring this year. "It's devastating both financially but also from a morale point of view". "We try to adjust for it in other ways, but it definitely has an impact on the festival because most artists are paid in USA dollars, and that has a big impact on the budget." he said.
For the past four years Huka Entertainment has worked to create a one-of-a-kind experience in the most attractive place on earth.
What was billed as one of the biggest events of the summer in BC has now been cancelled and people who bought tickets to July's Pemberton Music Festival are scrambling to find out if they'll get their money back.
"For the past four years, Huka Entertainment has worked to create a one-of-a-kind experience in the most handsome place on earth", the statement says. "We are extremely disappointed for our fans, artists and all of our partners who have supported the festival over the years", it says. According to the document, there will be no automatic refunds for ticket holders. "The festival is now in bankruptcy and has no ability to provide refunds for tickets purchased". There will be no automatic refunds from the festival, but ticketholders will be able to file a proof of claim form. The Trustee will issue formal notice of the bankruptcy proceeding to all known creditors of PMF within 5 days of its appointment. A determination of recovery, if any, on the claims of ticket holders from the estate will not be known for several weeks.
Ticket holders who used a credit card for their purchase are advised by the website to contact their bank or credit card issuer to see if they can obtain a refund. The Trustee will provide an update to creditors in due course.
The festival, which had been scheduled to run July 13-16, had recently announced its lineup, with headliners Chance the Rapper, Muse and A Tribe Called Quest.
Meanwhile, tickets are still available for purchase on their website.