Stripe Withholds $6.5M in Festicket Funds Two Years After Company's Collapse
Payment processor Stripe is currently holding approximately $6.5 million (£5 million) in Festicket sales funds, more than two years after the ticket company's collapse in 2022. This situation persists despite administrative requests for the funds' return.
Women at store checkout counter
Key Points:
- Stripe maintains a lien and security interest on the funds to cover potential customer chargebacks
- Unsecured creditor claims total around $30 million, with $23 million claimed by event promoters
- The held amount has decreased from £7.6 million in 2022 to approximately £6 million currently
- Customer chargeback processing has largely stopped
Legal Status:
- A court ruled that Festicket doesn't hold money in trust for ticketing agencies and promoters
- Administrators can now proceed with creditor distributions
- Approximately $5 million (£3.9 million) in contracts with AEG Presents Limited and other promoters remain under German law consideration
- Some accounts are held under Ticket Arena Limited's name
Stripe refuses to return funds, citing lack of visibility into potential creditor trust claims. This situation continues despite Festicket's acquisition by US company Lyte, which has also recently ceased operations.
Man in suit looking at phone.
Female in white shirt smiling.
Get Jewels dialog box.
Related Articles
Spotify Cancels Grammy Events, Redirects $5M to Wildfire Relief Efforts
