Begbies Traynor quickly sells Bestival out of administration

03 October 2018 Consultancy.uk

Professionals from Begbies Traynor wasted no time in finding a buyer for the music festival Bestival, after it collapsed into administration earlier in September. The Bestival and Camp Bestival music festivals have been snapped up by a multi-millionaire Dorset entrepreneur in a matter of days.

Bestival is a four-day music festival held in the south of England. It was initially held annually in late summer since 2004, at Robin Hill on the Isle of Wight, however in 2017 the festival relocated to the Lulworth Estate in Dorset. The move was not without its problems, and the group behind the festival collapsed into administration in September 2018, just months after the latest instalment of the event – which was headlined by the performers Chaka Khan, Grace Jones and Thundercat.

Julie Palmer, of consulting firm Begbies Traynor, was installed as administrator, was not short of viable options for the sale of the group. According to Palmer, there were multiple offers for the business on the table, however the one which one out belonged to one of the group’s creditors. The Richmond Group, controlled by the loan broker James Benamor, has purchased the festival business after offering £1.1 million for Bestival’s assets and brand. The Dorset-based lender had provided Bestival Group £1.6 million in February 2017.

Bestival’s sister festival, Camp Bestival, is also part of the deal, and the deal comes just in time for the family-targeted event, which is faced with a large number of refund requests, having been forced to shut early due to bad weather. The line-up featured Simple Minds and Rick Astley alongside children’s characters Peppa Pig and Paddington Bear. The company said the cancellation of the festival’s Sunday line-up this year was not the reason for its financial difficulties, but said it had not been “a positive factor for the business”.

At the same time, with the next Camp Bestival having already sold tickets, Richmond Group said that under the terms of its offer all Camp Bestival 2019 tickets sold so far would be honoured. On the Camp Bestival website, meanwhile, the company said that tickets for the 2019 festival remained valid and there was “no reason to believe Camp Bestival won’t go ahead as planned.”

In a statement, James Benamor, who controls the Richmond Group, said, “We have been fans and supporters of Bestival since the beginning. Our children have grown up with wonderful memories of these festivals. Bestival is an example of Dorset being world class and we are keen to ensure that this fantastic institution goes on to delight families and local businesses for many years to come.”