SSC Festivals, a division of Dusseldorf’s SSC Group, which runs New Fall Festivals, has filed for bankruptcy.
However, SSC MD Shahi-Moghanni says the decision to enter what he refers to as “preliminary bankruptcy”, will not derail the company’s festivals in Dusseldorf and Stuttgart.
“We have asked the court in Dusseldorf to enter preliminary bankruptcy, which is what you need to do under German law,” he tells Audience. “You have to show the Government when you have problems and they check this out.”
New Fall began in Dusseldorf in 2011, with a second event launched in Stuttgart two years ago. Both festivals take place across the same weekend in October and share artistes.
Shahi-Moghanni says SSC Festivals encountered difficulties after increasing the capacity of the events to 16,000 in 2017, where acts included Tom Odell, Kensington and Michael Kiwanuka. They will revert to 12,000-capacites this year.
“We actually sold more tickets than 2016, but the gap between the capacity and sold tickets was too much,” he explains. “You can control the costs, but never the ticket income.”
Despite the setback Shahi-Moghanni confirms this year’s festivals will go-ahead, under new company New Falls Festival.
Shahi Moghanni declined to comment on the amount owed to creditors. The line-up for New Falls is due to be announced in March.