Major Australian stagingcompany collapses
Fri 22nd Jun, 2012 in Local News
ES Group, the company that provided staging for the ARIA Awards and music festivals including Good Vibrations, V Festival, Future Musical Festival and Parklife, has collapsed leaving creditors $6 million in the red.
The business was founded in 1998 and turned over more than $11 million last year with the company’s (now defunct) website boasting that “with over 30 years experience worldwide and a client list that includes leading players in the music and entertainment industry, ES Group is a major force in the provision of staging and event services.”
However SmartCompany reports that fifteen staff have now been let go and the two staff remaining on the payroll are owed $195,000. Administrator Giles Woodgate of Woodgate & Co has told SmartCompany that businesses’ failure “appears to be fundamentally bad management, poor cost control, excessive wages and salaries… for the level of activity and for the way it was project orientated, the ES Group was undercapitalised.”
Major creditors affected by the collapse are scaffolding business 4ken, Crew on Call, Melrose Cranes, Mojo Barriers, Packard Trading, Butlers Events, the Australian Tax Office and Opera Australia. The ES Group has ceased operating and at the creditors’ meeting on next week a deed of company arrangement will be put forward that offers creditors just 16 cents in the dollar.
Photo of the Good Vibes stage by TheEnglishGentleman