Big Wheel is working with business rescue specialist Begbies Traynor and has entered into a company voluntary arrangement, meaning it will aim to repay creditors and then be dissolved.
Event has been told the two food and music festivals will still go ahead in 2012 under another festival management company that is well-known in the industry.
Big Wheel managing director Shabir Jobanputra told Event: "Contrary to other press reports, all charities associated with us are being paid in full. We're all trying to do the best we can and to make sure the event stays alive."
Harvest at Jimmy’s takes place at TV personality Jimmy Doherty’s farm in Ipswich and is scheduled for 7 – 9 September 2012. Former Blur member Alex James presents Harvest festival, which is held in Oxfordshire, and is set to run from 7 - 10 September 2012.
Big Wheel was already selling tickets to both events for next year, although no acts or chefs were confirmed.
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