The biggest music festival in B.C. has been cancelled.

Global News has learned that the organizers of the Pemberton Music Festival have filed for bankruptcy.

Breaking: 2017 Pemberton Music Festival canceled. Ernst & Young appointed trustee in bankruptcy. Details to follow. @GlobalBC @CKNW — Jill Bennett (@jillreports) May 18, 2017

Documents obtained by Global News show there will be no automatic refunds for tickets as “the festival is now in bankruptcy and has no ability to provide refunds for tickets purchased.”

READ MORE: What to do if you have a ticket to the 2017 Pemberton Music Festival

Ticketholders may file a proof of claim form with Ernst & Young, which is the festival’s trustee in bankruptcy. However, determining if a refund is applicable will not be known for several weeks.

Refunds may be available to ticketholders from third parties if tickets were purchased using a credit card.

Documents say poss refunds for holders of 2017 #PembyFest tickets if tickets purchased with credit card. Festival cancelled. @GlobalBC — Jill Bennett (@jillreports) May 18, 2017

As each bank and credit card issuer has its own specific policies, ticketholders can contact their bank or credit card issuer directly to determine whether a refund can be obtained.

READ MORE: What to do if you have a ticket to the 2017 Pemberton Music Festival

Documents also show the festival owes US $2.5 million to its creditors. Festival directors determined they were unable to meet the festival’s financial obligations as a result of decreased ticket sales and increased operating losses.

WATCH: 2017 Pemberton Festival goes bankrupt. Jill Bennett broke the story and has the details.

Organizers say they have collected $8,225,000 in ticket revenue so far this year. The budgeted expenses stand at $22,000,000.

READ MORE: Some ticket holders are out more than $1,000

They say the festival has been significantly impacted since 2015 by a weakening Canadian dollar relative to the US dollar.

READ MORE: Security guards from 2015 Pemberton Music Festival owed thousands

Shareholders and investors funded several million dollars to cover the festival’s cash losses over the last three years.

Last summer, it was revealed a group of security guards were still owed money for working at the festival the year before.

In the minutes before today’s announcement, the festival’s website said all but the $369 regular tickets were sold out. Both the website and the festival’s Twitter account have now been scrapped.

WATCH: Why are so many music festivals failing?

Huka Entertainment, the promoter and planner for the cancelled festival, said in a statement:

“For the past four years, Huka Entertainment has worked to create a one-of-a-kind experience in the most beautiful place on earth. We are heartbroken to see the 2017 Pemberton Music Festival cancelled. As a contract producer, Huka did not make the decision to cancel the festival. That decision was made by the Pemberton Music Festival, LP. We are extremely disappointed for our fans, artists and all of our partners who have supported the festival over the years.”

The summer camping music festival was supposed to take place July 13-16.

This year’s lineup included such high-profile performers as Muse, Chance the Rapper, A Tribe Called Quest and dozens of other acts.

The Pemberton Music Festival was first held as a three-day event in 2008.

It was not held for five years between 2009 and 2013, resuming in 2014 under different ownership.</s>One of Canada's largest music festivals has abruptly been cancelled after the organizers filed for bankruptcy.

On Thursday evening, those that visited the Pemberton Music Festival's website were greeted with a notice saying that the 2017 festival was cancelled, and that Ernst & Young Inc. have been appointed trustees in the organizers' bankruptcy.

The festival's Twitter account was deleted, but confused fans flocked to the Facebook page to demand answers.



 An advertisement on the Pemberton Music Festival's Facebook page shows the scheduled lineup for 2017 (Photo: Pemberton Music Festival/Facebook)

The festival's website notes that there will be no automatic refunds for those who purchased tickets or passes, but that credit-card holders might be able to obtain refunds from their bank or card issuer directly. Four-day passes for the festival cost $369, while VIP tickets cost as much as $1,799.

Pemberton was scheduled to run from July 13 to 16. Performers included Chance the Rapper, Muse, A Tribe Called Quest, Major Lazer, Run The Jewels and Eagles of Death Metal.

Documents on Ernst & Young's website note the festival had earned $8,225,000 in revenue to date, but had $22 million in budgeted expenses. The festival owes US$2.5 million to creditors.

Click to enlarge: 

 

 A screenshot of the Pemberton Music Festival's website on Thursday shows a message informing visitors that the festival has been cancelled. (Photo: Pemberton Music Festival)

"The Pemberton Music Festival has been significantly impacted since 2015 by a weakening Canadian dollar relative to the US dollar as many of its entertainment costs are denominated in $US dollars," read a statement on the site.

It also said that the festival is having difficulty sourcing talent because of "a limited number of artists touring in 2017."

Pemberton was first held in 2008, but then went on hiatus until 2014. Since then, it's been an annual festival. It drew 180,000 people to the B.C. village last year.</s>Facing a possible cash shortfall of over $10 million, B.C.'s Pemberton Music Festival (PMF) has been cancelled due to bankruptcy.

The festival's website, which had been online and selling tickets until 4 p.m. PT on Wednesday, now consists of a single page, confirming the partnership organizing the concert has filed for bankruptcy, with Ernst & Young appointed as trustees.

"Unfortunately there are no automatic refunds from PMF," it read.

"As PMF is now in bankruptcy, it has no ability to provide refunds for tickets purchased. However, ticket holders may file a proof of claim form as an unsecured creditor with [Ernst & Young] in accordance with the claims process."

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 festival was scheduled to take place from July 13 to 16. Organizers announced Chance the Rapper and Muse as this year's headliners three weeks ago.

A fact sheet posted by Ernst & Young said the festival had budgeted expenses of $22 million, and so far had received $8.2 million in revenue.
• First day of Pemberton Music Festival brings heavy traffic and security concerns

​In a notice on its website, Huka Entertainment, which produced the festival, said it was "heartbroken" to make the announcement.

"As a contract producer, Huka did not make the decision to cancel the festival. That decision was made by the Pemberton Music Festival, LP. We are extremely disappointed for our fans, artists and all of our partners who have supported the festival over the years," it says.

The Pemberton Music Festival originally began in 2008 under the management of Live Nation, but the company opted for it not to become an annual event.

Huka announced its revival for 2014, and headliners since have included Pearl Jam, Snoop Dogg, Kendrick Lamar and Outkast.

The Squamish Valley Music Festival, another weekend-long concert just north of Vancouver, was cancelled in 2016 after a six-year run.

Both the Pemberton and Squamish festivals began when the Canadian dollar was close to par with the U.S. dollar, and with most artists being paid in U.S. dollars, the loonie's decline played a big role in the festivals' long-term viability.

"In addition, the Pemberton Music Festival experienced increasing difficulty in sourcing talent for the 2017 festival due to a limited number of artists touring in 2017," says a fact sheet posted by Ernst & Young.

The loss of the festival will come as a blow to the economy of Pemberton, a small city 150 kilometres north of Vancouver. A $3 surcharge on each ticket went to local governments.

"That was so beneficial to the community. Now obviously we've lost that. That's hard to make up any other way," said Russell Mack, local director for the Squamish-Lillooet regional district.

Pemberton Mayor Mike Richman said the city had been given no warning that bankruptcy was imminent, and presumed the festival was going ahead after the lineup was revealed.

But Mack said the community knew the festival's long-term future was precarious.

"They've lost of a lot of money in the last three years, and you can only do that for so long," he said.

"It just seems that festivals aren't the easiest thing to make a profit at."
• Will the Music Festival become Canada's ?</s>This year’s Pemberton Music Festival has been cancelled due to bankruptcy.

The festival website was online and selling tickets until yesterday afternoon, but now displays one page which says the festival partnership has filed for bankruptcy, with Ernst & Young as trustees.

This year’s festival was scheduled for Thursday July 13 through Sunday July 16, with Chance The Rapper and Muse as headliners. According to Ernst & Young, revenue so far was $8.2 million, against budgeted expenses of $22 million.

Festival producers Huka Entertainment say that the decision to cancel was made not by them but by the Pemberton Music Festival LP. “We are extremely disappointed for our fans, artists and all of our partners who have supported the festival over the years,” Huka’s statement reads.

The PMF was born in 2008 under the Live Nation umbrella, but that company decided not to make it a yearly event. Huka revived it three years ago, and managed to attract high profile headliners like Snoop Dogg, Outkast, Kendrick Lamar and Pearl Jam.

The PMF ostensibly joins the Squamish Valley Music Festival as a victim of the sagging Canadian dollar. When the festivals began, the loonie was neck and neck with the US dollar; in subsequent years, its decline began to take its toll, as most of the artists were being paid in US currency. Says Ernst & Young, “In addition, the Pemberton Music Festival experienced increasing difficulty in sourcing talent for the 2017 festival due to a limited number of artists touring in 2017.”

Love, Dr. Scott James

 

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 Report A Typo</s>The 2017 Pemberton Festival has been cancelled after the organizers filed for bankruptcy.

Chart-topping artists Chance the Rapper, Muse and A Tribe Called Quest were all slated to headline the four-day festival in July.

At the 2016 Pemberton Festival, a police investigation was launched after a stabbing at a camping area.

This festival cancellation comes one year after the Squamish Music Festival was cancelled.

As of Thursday afternoon the website still listed tickets for sale.

More to come. Follow @CTVVancouver for the latest.</s>Weeks after revealing its 2017 lineup, the Pemberton Music Festival has been canceled and its organizers have filed for bankruptcy.

A notice of bankruptcy was posted to the festival’s website on Thursday. Adding insult to injury, ticket holders will not receive automatic refunds. Instead, they must file a claim through Ernst & Young, which is the festival’s trustee in bankruptcy. And even then, there’s no guarantee of a refund. “A determination of recovery, if any, on the claims of ticket holders from the estate will not be known for several weeks,” the notice reads.

The festival was to take place July 13th-16th in Pemberton, British Columbia with a lineup featuring the likes of Chance the Rapper, Muse, A Tribe Called Quest, HAIM, MGMT, and more.

This marks the second time in Pemberton’s brief five-year history in which the festival has been canceled. Following its debut in 2008, Live Nation pulled the plug on the event the following year due to a land dispute with the local government. HUKU Entertainment revived the brand in 2014 and held two further installments in 2015 and 2016.

All is not lost, however. Canada’s WayHome Festival is offering free passes to Pemberton ticket holders. Click here for more details.</s>VANCOUVER -- The Pemberton Music Festival in British Columbia has filed for bankruptcy and this year's event has been cancelled.

Those who have already bought tickets to the event that was scheduled to start July 13 may also be out of luck when it comes to getting a quick refund.

A statement posted on the festival website says because the partnership that organizes the festival is in bankruptcy, it has no ability to provide refunds.

It says ticket holders can file a claim as an unsecured creditor, but estimates that process would take several weeks to resolve itself.

Financial services firm Ernst & Young Inc. was appointed as a trustee to oversee the process. 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 statement also noted the festival had trouble attracting talent for this year's festival because of a limited number of artists who were touring in 2017.

Tens of thousands of people took in last year's event. The festival was first held in 2008, but took a five year hiatus between 2009 and 2013. The event suffered significant losses in each of the previous three years</s>One of the biggest music festivals in B.C. has been cancelled.

Global News has learned that the organizers of the Pemberton Music Festival have filed for bankruptcy.

Documents obtained by Global News show there will be no automatic refunds for tickets as “the festival is now in bankruptcy and has no ability to provide refunds for tickets purchased.”

However, ticketholders may file a proof of claim form as an unsecured creditor with Ernst & Young, which is the festival’s trustee in bankruptcy. However, determining if a refund is applicable will not be known for several weeks.

Refunds may be available to ticketholders from third parties if tickets were purchased using a credit card.

As each bank and credit card issuer has its own specific policies, ticketholders can contact their bank or credit card issuer directly to determine whether a refund can be obtained.

Documents also show the festival owes US$2.5 million to its creditors. Festival directors determined they were unable to meet the festival’s financial obligations as a result of decreased ticket sales and increased operating losses.

WATCH: Pemberton Music Festival: Boom or bust for the local economy

Organizers say they have collected $8,225,000 in ticket revenue so far this year. The budgeted expenses stand at $22,000,000.

They say the festival has been significantly impacted since 2015 by a weakening Canadian dollar relative to the US dollar.

Shareholders and investors funded several million dollars to cover the festival’s cash losses over the last three years.

Last summer, it was revealed a group of security guards were still owed money for working at the festival the year before.

Currently, the festival’s website says all but their $369 regular tickets are sold out.

The summer camping music festival was supposed to take place July 13-16.

This year’s lineup included such high-profile performers as Muse, Chance the Rapper, A Tribe Called Quest and dozens of other acts.

The Pemberton Music Festival was first held as a three-day event in 2008.

It was not held for five years between 2009 and 2013, resuming in 2014 under different ownership.</s>Less than a month ago, Huka Entertainment announced with a big splash the lineup for the 2017 Pemberton Music Festival. With headliners Chance the Rapper, Muse and A Tribe Called Quest, fans were urged to purchase tickets – warning that early-bird tickets sell out quickly, as do regular tickets – starting at $369 each.

“Our fourth year will absolutely be the best PembyFest yet!” Huka CEO Evan Harrison said in a media release.

Fans who jumped at the chance now find themselves out of luck: On Thursday, the festival was cancelled after the event went bankrupt, leaving ticket holders without refunds.

“I feel duped,” said Angela Quiring, a Prince George mother who had fronted her daughter and three friends $1,857 for four tickets to the festival.

She said MasterCard told her Thursday that it is now filing payment disputes on behalf of customers such as her and that the organizers of the festival now have 60 days to respond.

After rumours of Pemberton’s demise fuelled an online firestorm of criticism Thursday afternoon, U.S.-based Huka Entertainment, which has been running the festival, announced the cancellation with a notice on the event’s website.

“For the past four years, Huka Entertainment has worked to create a one-of-a-kind experience in the most beautiful place on earth. We are heartbroken to see the 2017 Pemberton Music Festival cancelled.”

At roughly 18,200 tickets sold, organizers knew they weren’t going to match last year’s total of 38,000 and stood to lose more than $10-million this year, according to Ernst & Young’s Kevin Brennan, whose company is now the event’s trustee overseeing its bankruptcy proceedings.

“Really it’s just driven by fewer ticket sales than they had hoped to achieve and operating costs that had continued to rise, partially a result of the exchange rate as well,” said Mr. Brennan, a senior vice-president at Ernst & Young’s Vancouver office.

He added that the festival owed more than $2.5-million (U.S.) to secured creditors.

Shane Bozzer, co-owner of Salmon’s Rentals and Apex Tent, said his Burnaby-based company is still owed more than $70,000 for helping build the VIP area at last year’s festival. His business partner met with Huka a week ago and was assured that a cheque for that amount could be picked up this week in Vancouver, he said. On Thursday morning Mr. Bozzer said he arrived at a downtown office building to pick up the money and was informed of the bankruptcy.

The notice on the Pemberton event's website warned there would be no automatic refunds. It said people who purchased tickets had the option of filing a claim as an unsecured creditor while also urging customers to seek reimbursement through their credit card providers.

A publicist for Huka said the company had no further comment. The festival’s Twitter account was no longer active.

The festival, which had been scheduled to run July 13-16, is held in picturesque Pemberton, located north of Whistler, about a two-hour drive from Vancouver.

The festival initially launched for a single year in 2008, when it was produced by Live Nation. It was not staged again until 2014, when Huka, which is based in New Orleans, relaunched the event.

Pemberton Mayor Mike Richman said he was disappointed.

“The Pemberton Music Festival brought a lot of exposure to our area and had a huge economic impact in our community; it was an exciting event to have in our town,” he said.

While unsure of the exact economic impact, Mr. Richman said it was substantial. “There was a good deal of local employment, the festival would use local vendors, they would definitely use local businesses – food and beverage, hardware.”

Mr. Richman says he didn’t know what went wrong directly – he started hearing rumblings on Wednesday and heard the news confirmed on Thursday like everyone else.

“I think it’s a tough market. I’m not going to pretend to understand that industry nor am I going to pretend to understand their financial workings. I know the Canadian dollar definitely had an impact.”

He adds that he hopes a music festival can return to the town.

“I hope that there could be an opportunity to regroup and see an event like that come back to Pemberton because I think it’s a great setting for it. We’ll see where we go from here.”

Jonathan Simkin of 604 Records, who manages the band Dirty Radio, which was set to play at the festival, was shocked at the cancellation.

“When you’re in the business and you see something like this, your first thought goes to your own clients,” Mr. Simkin said in an interview. “And you feel horrible. This is something they’ve been looking forward to; it’s a big deal. It’s probably the gig they were most looking forward to this summer. It’s devastating both financially but also from a morale point of view.”

He said it’s especially distressing that concert-goers won’t be getting their money back. He also noted that the Squamish Music Festival was abruptly cancelled last year.

“Between this and Squamish, it really makes you wonder what’s going on,” he said.

Reached in the UK, Stephen Franke, who manages the Victoria-based band Current Swell, said he was dismayed at the cancellation at such a late juncture.

“It’s a huge hit for Canadian music and it’s more of a hit for us than it is for the American acts who are coming up because this is a major festival and if you’re a Canadian act you’re going to take it seriously.”

Current Swell released an album just last week and Mr. Franke said Pemberton was going to be the key local date for the album release period.

“When a festival cancels there’s an open hole for a band,” he said. “You’ve dedicated that weekend to that. None of those bands are going to make up that income in that time period.”

Noting that festivals are difficult and expensive to mount, Mr. Franke said Pemberton’s demise is particularly disappointing given the cancellation of Squamish last year.

“Now both are gone. What a drag.”

Late Thursday, the WayHome festival in Ontario offered Pemberton ticket holders a free general admission ticket to its 2017 festival, to be held July 28-30 in cottage country.

Ms. Quiring said she was still trying to reach her daughter Avery, who is travelling in Australia, to tell her the bad news.

“If we don’t get reimbursed we can’t really make a bunch of 19- and 18-year-olds pay us $500 for something they’re not going to use – so we’ll probably end up sucking that up.”</s>VANCOUVER - The 2017 Pemberton Music Festival has been cancelled.

The festival is now in bankruptcy and Ernst & Young Ltd. has been appointed as trustee, according to a media release on the festival's website posted Thursday afternoon. The document says there will be no automatic refunds for ticket holders, who may have to wait weeks to learn whether they'll get their money back.

"As PMF is now in bankruptcy, it has no ability to provide refunds for tickets purchased," the document says. "However ticketholders may file a proof of claim form as an unsecured creditor with EYI in accordance with the claims process."

Some ticket holders may also be able to get refunds from third parties if their tickets were purchased using a credit card, and should contact their bank or credit card issuer regarding a refund, the document says.

An announcement about the popular four-day music event's cancellation was expected Thursday afternoon, according to several sources involved in its production who spoke off the record with Postmedia.

Slated to run July 13 to 16, it would have been Pemberton's fourth year, featuring headliners Chance the Rapper, Muse and A Tribe Called Quest as well as Major Lazer, Haim, Run The Jewels and dozens more acts.

Last year, the festival drew a record 180,000 fans over four days to Pemberton Village, north of Whistler. The event has brought major international acts such as Pearl Jam, Snoop Dogg, The Black Keys, Nine Inch Nails, Frank Ocean and Soundgarden.

The cancellation comes after lineup announcements were delayed several times in recent weeks.

On Tuesday, a post to the festival's official Facebook page indicated the event was still on: "It's just not the same here without you guys. Can't wait for you to come back home in less than 8 weeks!! #PembyIsMagic"

Wednesday afternoon, a festival goer commenting on the Facebook page was told that wristbands will be shipped out two to four weeks before the event.

And as of Thursday morning, four-day, general-admission tickets were still selling for $369 while VIP tickets – which included special entrances, viewing and parking – cost $899 and Super VIP tickets cost $1799.

But six sources involved in the event's production told Postmedia they'd heard firms were being contacted Thursday morning regarding the cancellation.

The event is produced and promoted by Huka in collaboration with the Village of Pemberton, Sunstone Group, Lil'wat Nation and Squamish-Lillooet Regional District.

Representatives for Huka and Sunstone were unreachable for comment.

Last year, the Squamish Festival was cancelled. Founded in 2010, it brought major acts to the Squamish Valley including Drake, Weezer, Metric, Bad Religion, The Tragically Hip, Eminem and Bruno Mars.
The 2017 season of the Pemberton Music Festival, a prominent music festival scheduled to occur July 13–16 in the Canadian city of Pemberton, British Columbia, is cancelled following declaration of bankruptcy by the organizers.