Gatecrasher is an internationally renowned club brand with a distinguished history. Scott Bond and Simon Raine held the first Gatecrasher event in 1993, and Gatecrasher rapidly grew to dominance to become one of the premiere UK brands in the industry. In 2007, the company had a major setback when the iconic nightclub Gatecrasher One caught fire and was damaged beyond repair, later being demolished.
On 1st August 2013, the company TipTopTap Limited, also trading under the names ‘Gatecrasher’, ‘Gatecrasher Clubs and Bars’ and/or ‘Gatecrasher Holdings’, entered administration.
Multiple online sources (Example: Accountancy Live) quote the administrators Duff and Phelps as stating that “the business had chalked up operating losses of £1.1 million from June 2012 to March 2013.” The same sources also quote a report from the administrators as stating:
“Recessionary economic factors and continued competition in certain locations put pressure on bar prices and entrance fees. This made it difficult to maintain attendance levels, causing the companies to incur losses. The companies owe in excess of £500,000 to HM Revenue and Customs and are unable to pay debts.”
In the following 12 months, Gatecrasher has been widely criticised by certain people, organisations and media in the music industry. This has been fueled by numerous reports of DJs declining to work with Gatecrasher at their new club in Ibiza , which was formally Eden (PICTURES), during what has been a difficult summer for everyone on the island. Examples of DJs pulling out include Arctic Moon, Indecent Noise and Super8 & Tab:
Here is an unedited copy of the statement in full:
Gatecrasher Official Statement
Further to all of the recent rumours / speculation over Social Media with regards to Gatecrasher.
As usual, sensationalist online portals and blogs need to create some air of speculation in order to further their own selfish pursuits and boost reach / exposure at the cost of the truth and anyone else. Their only interest is to get people talking, no matter what it takes or any ramifications it has for the industry or any other individuals. In the process of trying to deliver a “scoop”, they invent stories from thin air and expect the public to swallow this. We do like to hope that people are a bit more savvy and smart and can see this a mile off, however in the same breath we do feel it is our duty to clear the air for those with any margin of doubt. As is always the pattern with these new age “tabloids” (basically online versions of crummy Newspaper publications). Also it is worth pointing out that not once has any Blog or Portal made any attempt to contact anyone from Gatecrasher for comment. It is very bad journalistic practice to not facilitate this, not to mention publishing false statements. Many so called “facts” are completely removed from the truth. This is currently being dealt with as it is a crime to slander a company with false facts and farcical articles since many statements are libellous as a result.
With regards to specific elements of this article:
The Gatecrasher operating company was formed in 1997 and traded as one entity to 2013. The same company entered into administration, a legal process used to breath life into business that have both good elements and bad elements. The business at the time had several onerous leases and despite discussions with landlords most would not assist so the company was put into administration and the unprofitable parts of the company were removed. This allowed the profitable parts of the company to continue under a new trading entity, without this the whole company would fail and all would lose their jobs and the venues would have been closed. Unfortunately the administration process leaves some people in a position that their debts would not be met. We apologise for any financial losses and inconvenience however it is a process that saves many jobs and can allow a new company to grow and develop (and as such continue to contribute positively towards the economy for many years to come). The largest creditor in this process were the other group companies and the directors of the group. The process of Administration is put in place to safeguard jobs and good businesses that run into some trouble and is not undertaken lightly. It’s a very common practice under the jurisdiction of UK law therefore any statements that lean towards this being “dishonest”, “malpractice” etc are just buzz words for a blog trying to inject some drama into what is quite commonplace in today’s economic climate.
Statements such as owing money to Barclays Bank are completely untrue , they are not owed a penny from the administration. The outstanding debt with University of Birmingham’s Guild of Students in the article is wrong and in fact they were offered a full payment back to the university but they declined. Crazy but true . Most of the companies and individuals that had outstanding debts with the administration had earned good money for over a decade out of the company so many took the administration as a small bump in a 15 year customer / supplier relationship, nothing more. Most are still in fact working with Gatecrasher, including but not limited to, DJ’s , Promoters, Print Companies, City Councils, Utility Companies etc. Sadly some creditors have taken this as a personal slight and now have vendettas against Gatecrasher using social media as outlets to create bad press
Anyone who feels that they they are owed money by Gatecrasher which relates to the Adminstration should contact Duff & Phelps www.duffandphelps.com / +44 (0) 207 089 4700 . Any other payment enquiries should be forwarded to the Gatecrasher Accounts Department on the following email address: firstname.lastname@example.org.
The section “Unconfirmed Reports” bears the clue in the title. We could make up any “Unconfirmed Report” and use it to publish any story we wish. It’s an “unconfirmed report” that Beats Media fund terrorism. It’s an “unconfirmed report” that YouEDM are actually the largest people trafficking organisation worldwide. It’s “unconfirmed” that both of these portals joined forces to spread the Ebloa virus…. and to add insult to injury, they often say “By the way please subscribe to our Page so we can feed what we deem the uneducated masses more drivel”. So called “Anonymous sources” also have no weight and must be questioned as a result for much of the same reasons.
The statement relating to Watford is not true. To set the record straight ,there were on-going negotiations with the landlord. It is not simply a case of “rent not being paid” as the article states The trading company was and is still in talks with the landlord and authorities to re open but only under viable licensing conditions. The venue is currently limited to a 2.00am licensing restriction meaning the operation is financially unviable. Over the past 18 months, the group has operated these venues at substantial losses, investing over £800k to safeguard jobs, whilst working with the authorities to remove licensing restrictions and allow the venue to trade on a equal footing against its competitors.
Nottingham / Leeds
Nottingham and Leeds venues were closed by Gatecrasher sometime ago as they were loss making venues. Anyone would have thought this news was old hat but I guess any blog needs as much information as it can in order to try and make an impression. Any business reserves the right to streamline their portfolio as the market dictates.
2014 has been a tough season for all venues in Ibiza, not just Gatecrasher; it has been challenging to say the least, we have made some mistakes but we are in a much better position to deal with the challenges in 2015. When we set out with the Gatecrasher Ibiza project we like most promoters got caught up in competitively bidding on acts, artists and brands. As is the pattern, artist and brand fees are becoming more and more inflated to the point that a lot of events become commercially unviable. Sadly some nights have just have not performed hence why we have had to make some changes to the programme. As venue operators and promoters we reserve the right to change our programme and concepts as the market dictates. This is common business practice. Of course people have been entitled to refunds for any pre-booked line ups and events that have changed as a result and we do our best to communicate this. For our up-to-date programme please refer to our Website or Facebook. Gatecrasher Ibiza remains open until September 2014 and we would like to thank all have been so far to the events in the summer of 2014. We will also be back in 2015 with new exciting news and events.
For avoidance of any doubt, Gatecrasher Birmingham and Gatecrasher Ibiza both remain open for business. Gatecrasher works in the digital age and promotes free speech and opinion, however we do not support or condone any action that is damaging or libellous caused by false statements.
For further information or questions:
Administration: Duff & Phelps / www.duffandphelps.com / +44 (0) 207 089 4700
General Enquiries: email@example.com
Upcoming Events: www.gatecrasher.co.uk
Booth Bookings: firstname.lastname@example.org (0) 44 121 6331520
The language used in the above statement indicates that Gatecrasher feels unjustly targeted by false accusations, and their responses are as combative as you would expect. But will it be enough to sway the doubters?
Gatecrasher has come back fighting, but a long drawn out war of words will only damage their reputation further, as it will just result in their perceived and actual shortcomings being shared with a wider audience.
If this really is the beginning of the end for Gatecrasher, I will not personally take any pleasure in it’s demise. Nobody wins when hard-working staff, artists, promoters and affiliated companies aren’t paid, and accentuating problems doesn’t help them get resolved.
For the sake of all parties, I hope that Gatecrasher not only survives this but thrives. But for this to happen, it cannot be at the expense of other people. The music community needs to give Gatecrasher time and encouragement how to turn itself around. Gatecrasher in turn needs to listen to the public dissatisfaction, take on board the constructive criticism, learn from it’s own past mistakes and work with (and not against) the music community.
The public claims and counterclaims and general ‘chucking of toys from the pram’ is great entertainment for social media, but a company at war with it’s customers does not remain a company in business for very long…
If you have worked for / with Gatecrasher, or had an experience at one of their clubs recently, let us know your thoughts in the Comments section below or on our Facebook page at: facebook.com/trancefixxed