The show must go on – how to support distressed festivals

24 June 2026

Long-time festival goer and R3 member, Malcom Niekirk, a partner and Head of Insolvency and Restructuring at Frettens, provides expert insight into the risks of staging a festival and the joy when it all comes together.   

Running a music festival in 2026 isn’t for the faint hearted. At least 20 events had been cancelled or postponed by early June and for the rest, margins are wafer thin.

Big events like Glastonbury, the Isle of Wight, Reading and Leeds have become institutions but there are countless smaller-scale events that provide a fantastic atmosphere, entertainment and lifelong memories.  

Sadly, a few end up being memorable for the wrong reasons like the famously disastrous Fyre Festival in 2017 or (more recently) the Wireless Festival in London which was cancelled after the headline act, Kanye West, was banned from entering the UK. But in Malcolm Niekirk’s experience, the reasons that most festivals run into trouble are less dramatic.  

Malcolm spoke to Recovery News to explain the typical pitfalls organisers should avoid and how the profession supports those events that run into difficulty.  

A fragile business model

Festivals may feel carefree, but the reality is highly complex. A single festival generates the income that must sustain a year’s planning, bookings, and logistics.

“The key challenge is that all the income comes in over a short time period – usually a weekend,” Malcolm says. “You’ve got a whole year of preparation, but very little opportunity to increase revenue or reduce costs once the event starts.”

This makes cash flow a critical issue. Ticket revenues are often held by agents and only released after the event has taken place, leaving organisers reliant on upfront funding to meet costs in the run-up.

“That’s usually the point where problems become clear,” he explains. “Organisers can see the maths isn’t going to stack up – whether that’s due to ticket sales, rising costs, or both.”

For this reason, failure before the event is more common than failure afterwards. While disappointing for ticket-holders, early cancellation can limit wider losses and protect the long-term future of the festival. 

When things go wrong 

Even well-established festivals are vulnerable as years of success can be undone by a combination of external pressures. 

Notable examples include: 

• Hop Farm Festival was cancelled and entered liquidation in 2013 following poor ticket sales
• Blue Dot Festival struggled to recover after the pandemic pause and severe weather disruption  
• Bestival went into administration after consecutive years of weather-related losses across its events. 

“These aren’t one-off issues,” Malcom says. “Festivals are generally resilient and can absorb a year or two of bad luck. But three difficult years in a row is going to be a serious problem for most.” 

Creditors can include major performers, suppliers, and public bodies, reflecting the breadth of stakeholders involved and the scale of financial exposure. 

Rising costs and changing risks 

The current trading environment is adding further strain. 

“There are increased costs across the board,” Malcolm notes. “Everything from staffing and fuel through to things like the cost of hiring portaloos has gone up significantly.” 

At the same time, consumer spending is under pressure, limiting the scope for ticket price increases in what is already a competitive market. 

The result is a squeeze on margins, even for well-run events. While major festivals continue to sell out quickly, smaller or newer entrants face a tougher landscape. 

Weather is also becoming a more significant risk factor. 

“I think climate change and the likelihood of more extreme weather is going to be an increasing problem,” Malcolm says. “That feeds into higher insurance costs and greater uncertainty.” 

The role of restructuring, turnaround and insolvency practitioners 

Given these challenges, early engagement with an insolvency practitioner (IP) can make a meaningful difference and improve the potential outcomes open to organisers. 

“I do know of a case where a festival survived by cancelling,” Malcolm says. “It was counter-intuitive, but they made the decision at the right time. Although there were losses, they avoided much bigger ones and were able to run the festival successfully the following year.” 

Organisers may feel pressure to proceed after significant time and money has already been invested. However, stepping back can sometimes be the most sustainable option. 

For IPs, the approach will depend on timing. 

• Pre-event, the focus is on assessing viability, cash flow, and restructuring options. 
• Post-event, formal insolvency processes such as liquidation are more likely. 
• Trading through insolvency, is rarely feasible in this sector due to the complexity of contracts and regulatory requirements. 

“Festivals aren’t straightforward businesses,” Malcolm explains. “But the core skills of understanding the finances, identifying the issues, and assessing the available options still apply.” 

Professionalisation versus passion 

Festivals often fall into two camps. 

At one end are large, highly professionalised festivals with established systems, strong brands, and financial backing. At the other are smaller, often passion-led events run by enthusiastic newcomers. 

Licensing, safety requirements, and coordination with authorities all add layers of complexity. Even opening the gates can depend on last-minute inspections and approvals. 

“It’s not enough to focus on the creative side. You have to get the fundamentals right such as the site, transport, food and sanitation and of course realistic financial management. Without those, nothing else works,” Malcolm explains. 

Equally, the willingness to take difficult decisions early, seek professional advice and prioritise long-term viability can make the difference between failure and recovery. 

Why it’s all worth it 

Despite the challenges, Malcolm remains enthusiastic about festivals, both as a professional and as a fan. 

Asked about his own experiences, he highlights standout moments, from exceptional live performances to the unexpected intellectual inspiration of science festivals like Blue Dot which can be “mind-expanding in every sense.” 

For all the financial complexity and operational risk, festivals continue to offer something unique for audiences and organisers alike. 

And when everything comes together, despite the odds, it reminds everyone involved why the show must go on.