Thousands of ticket holders have been left empty handed after W-Festival was cancelled just two weeks before it was set to take place at the Ostend beach. But the chances of refunds being issued are slim as the organising company has filed for bankruptcy.
On 8 August, W-Festival was cancelled after a sudden bankruptcy announcement of the company behind the music event, Wave to Synth, which cited ongoing financial hardships and disappointing ticket sales.
The cancellation was unexpected, according to Peter Craymeesrsch, general manager of the Ostend tourism board. "Our event coordinator had contact with the production team two days before [the bankruptcy announcement], on Tuesday. They had a meeting on the beach and were starting the build-up," he said. "We didn't have any indication that the ticket sales were bad because the organisers were communicating that 80% of the tickets had been sold."
Parties affected by the cancellation can submit a debt claim, announced the trustee, Petra Seymoens, on Wednesday. But while bankruptcy proceedings are officially ongoing, consumers should not have high hopes, warned Laura Clays, a spokesperson for the consumer rights organisation Test Achats.
Bankruptcy really means no money
When it comes to bankruptcies, the hopes for refunds are minimal. "You have a 0.00001% chance of getting any money back, let alone your whole ticket value," said Clays.
In theory, consumers should always get their money back when an event is cancelled, but this is often not the case as investments from the company have already been paid out, according to Clays.
"What usually happens is organisers propose vouchers for consumers or say your ticket will be valid next year. If it's a festival that takes place every year and that has a good reputation, a large number of consumers will accept that. And then there will be enough money to pay out the others," said Clays.
But in the case of bankruptcy, vouchers or future editions are not an option. "So everyone is supposed to get their money back at the same time. Money that simply doesn't exist in the organisation," explained Clays.
Once bankruptcy is officially declared, a trustee is appointed to take over the company's assets and to oversee that outstanding debts are paid. In some cases, there is a possibility of generating additional funds by selling goods or parts of the company to settle the debts, Clays says.
Everyone loses
In the case of Wave to Synth, Seymoens confirmed to The Brussels Times that the company has "no money" and that it is too early to determine if any additional money will be generated. However, the chances of compensation for ordinary creditors, such as ticket holders or bands set to perform, are "nearly 0%" according to Seymoens.
Even if money was available, the likelihood for consumers to be paid in the event of bankruptcy is minimal. "There’s an explicit order [for the payouts] in the law," explained Clays. "Consumers come at the very end of the list, and there [likely] won’t be money left at the end."
A total of 15,000 tickets for the festival were sold, according to what the festival organisers told Craymeesrsch.
Regular day tickets cost between €79 to €94. Regular three-day combination tickets cost €219, while the early bird versions cost €119, €159, and €199. VIP day tickets cost between €169 to €194, while the VIP combination tickets cost €499. All regular and early bird combination tickets were sold out, according to the W-festival 2024 website.
Affected parties can submit debt claims via the online central register for solvency.
The Brussels Times contacted Wave to Synth and the W-festival organiser for comment but has yet to receive a response as of the time of publishing.
