This is a hard post to write. Unfortunately having to cancel our March 17th Devon event mid way through due to extreme weather has crippled us financially. On each event we’ve put on over the last 5 years we basically plough all of the ticket revenue we receive into promoting and putting the event on. The 17th March Devon event was no different. As it was our first year in Devon we invested heavily in the event to make sure it was a good one with the aim of growing the event in year 2.
Unfortunately the extreme weather on the day led to the event being cancelled mid way through. The result is that we have approx. 1,000 runners who did not complete the course who now want refunds or free tickets to future events.
The profit margins on the event have always been extremely tight to say the least. Organizing the event has always been a labour of love for us not about making huge amounts of money as some people seem to think. All of the ticket revenue from the Devon event and then some was spent on promoting and putting the event on. Given this there are not sufficient financial reserves in the company to pay refunds and also put on future events.
If we offered 1,000 free tickets to runners who didn’t complete the course, and everyone took that instead of pursing a refund, we would effectively be putting another event on with zero revenue being generated to fund it. Each free ticket taken would cost the event money i.e. a fee is paid to venues for each runner, insurance is paid per runner etc so giving 1,000 free tickets away is again not financially viable.
We have therefore reached a point where the event is effectively insolvent and won’t be able to put on further events. We have taken professional advice and sadly, we have no option but to place the company into liquidation. We are currently working through the process of appointing a liquidator. Once formally appointed creditors will be notified.