The company that promoted the disastrous Fyre Festival earlier this year has been put into bankruptcy by a judge, according to The Wall Street Journal. The move was made in U.S. Bankruptcy Court after three lenders, who filed their suit in July, sought to force Fyre Festival LLC into chapter seven bankruptcy.
The three loaned the festival $530,000 and are seeking to find out whether any of it can be returned. Robert Knuts, an attorney for the lenders, said Fyre did not contest the petition.
“If the money was burned up in the Bahamas we’re not going to be able to recover it but at least we’ll know where it went,” Knuts told the paper.
A trustee is likely to take control of Fyre Festival LLC and will have the authority to research the company’s records and recover money for lenders. It could even force the festival’s parent company, Fyre Media Inc., into bankruptcy.
In the wake of the festival’s spectacular collapse, Fyre Media chief Billy McFarland spent a night in jail after being arrested June 30 on suspicion of fraud and swindling investors out of millions of dollars. He was released the following day on his own recognizance and the promise of a $300,000 bond.
The heavily hyped “luxury concert” — which was scheduled to take place on a small island in the Bahamas and feature Blink-182, Migos and Disclosure — collapsed on in a mess of disorganization on April 29, before it had even started. Far from the luxury accommodations and celebrity-chef-prepared meals promised by its producers — McFarland and rapper Ja Rule — concertgoers were met with flimsy tents, boxed lunches, near-total disorganization and long waits for flights to return to the mainland after airlines began refusing to fly would-be concertgoers to the overcrowded island of Exumas.
One production professional briefly associated with the festival told Variety the event was marked by “incompetence on an almost inconceivable scale.”