In show business you often here the saying ‘The show must go on’ and that is certainly the case for Manchester Fashion Week.
Bosses at the company are set to appear before court officials after being served a winding up petition. However the director, Jonathan Sassen, says that the event will take place in the near future, under a new company.
It was revealed in March that Manchester Fashion Week Ltd had accumulated around £20,000 worth of debt for models and agencies used in 2011’s show. Stream Pictures LLP, who provided video content for the event, launched the winding up order over an unpaid bill of £10,766.99.
The MEN reports that the company has three outstanding County Court Judgements (CCJs) against it from last year because of unpaid debts; and that the total amount of CCJs issued by Northampton County Court equate to more than £7,000.
Now the case is due to be heard on 13th May 2013 at Manchester District Registry however, a new company, Fashion Foundation Ltd, has already been established. The five-day extravaganza was due to start on 22nd April but the National Football Museum pulled out of hosting it.
Boohoo.com, the show’s lead sponsor, also withdrew support from the exhibition but bosses have vowed that this year’s cancelled event will be rearranged.
Many creditors have voiced their outrage that the show is going ahead under a new firm, as bills remain unpaid.
Pat Ford, credit controller for Stream Pictures LLP, said: “It is very damaging for us to have a bill as large as this go unpaid. We’ve done everything we can to find a solution but unfortunately we no longer felt this was going to be forthcoming. We were continuing with negotiations right up until the petition was advertised but the fact a new company had been set up to carry on with the event did increase our concern that we would not receive what we are owed.”
Mr Sassen said: “Following 2012’s shows we faced cash-flow issues which regrettably led to a handful of minor disputes that we are working through.”
Receiving a winding up order can have serious consequences for you and the business. If you have been served one, call us immediately on 0800 231 6040.