Inverness Caley Thistle events firm in financial difficulties
Register for free to read more of the latest local news. It's easy and will only take a moment.
Inverness Caley concerts seeks legal advice over thousands of pounds of debt are said to be behind insolvency plans for Inverness Caley Thistle Concert Company – the firm behind bringing Andrea Bocelli and Duran Duran to the Highland capital for gigs on consecutive evenings last month.
A document seen by the Courier alleges that multiple firms have been informed that the company “exceeded its budget” during the performances.
Documents allege that a “lack of internal controls” led to costs spiralling – an issue some companies involved have already disputed, with legal action pending.
As a result, Dundee-based firm Ascot Tax has been brought in to try and resolve the issue.
It is understood Inverness Caley Thistle Concert Company and Inverness Caledonian Thistle are separate entities.
The directors of Inverness Caley Thistle Concert Company are Caley Thistle chairman Ross Morrison and club director Liam Dalgarno.
Creditors have been sent a letter outlining a company voluntary arrangement, which is “recommended” as the next course of action.
A one-off dividend is being offered which will amount to 65 per cent to the creditors – meaning more than a third of their bill would not be paid.
Inverness-based economist Tony Mackay said: “I am not surprised that there have been financial problems caused by the two concerts.
“It is a difficult time for the local economy because of the problems caused by high energy prices and the continuing impacts of the coronavirus pandemics.
“The numbers of people attending the two concerts and the amount of money they spent there were probably therefore less than the organisers expected and budgeted for.
“There is a story in the national papers this morning [Monday] about attendances and revenues at the Edinburgh Festivals being 25 per cent lower than in 2019.
“That could well have been the case with the Inverness concerts. The accountants have suggested that there is money available to pay 65 per cent of what is owed, which is
a 35 per cent difference, compared with the 25 per cent in Edinburgh.
“I hope the problems don’t affect future events at the Caledonian Stadium.”
At least 75 per cent of creditors have to agree to the terms for the deal to be agreed.
One of the creditors, who wished to remain anonymous, said: “This is terrible for us and all the other businesses.
“We’ve had challenge after challenge, with the pandemic and cost-of-living crisis, and now this.
“We carried out the work for these concerts in good faith so we should be paid, just like everyone else involved.
“This all leaves a bitter taste and I’d be shocked if there was ever another big event like this at that stadium again.
“We’ve tried to speak to Caley Thistle about but they refer us to the accountants. People are putting their heads in the sand.”
The Caley Thistle events company, football club and Ascot Tax were contacted for comment.
