GIA Insolvency Practitioners issued a letter on 13 May on behalf of the company addressed to all known creditors. It stated the company’s director, Christopher Palmer-Jeffery, had decided to start liquidation proceedings in regards to its financial position.
Neil Gibson, director of GIA Insolvency Practitioners, told Event: "It is not likely the London Opera Festival will go ahead. With advanced bookings already made, and possible insufficient assets, it is highly unlikely creditors will be reimbursed."
He said those who booked tickets for the festival through German ticketing services provider CTS Eventim would be protected and receive their money back.
A meeting, due to take place on Wednesday 22 May in Birmingham, will confirm the liquidation of IOP. A former IOP employee told Event that the decision has resulted in eight redundancies at its office in London’s Liverpool Street.
The London Opera Festival, in association with the Financial Times, was scheduled to take place at the Tower of London between 9 and 13 September.
The black-tie event had been advertised as a performance of Puccini’s Madame Butterfly by the Russian Rostov State Opera, who have not performed in the UK since 2007.
Corporate hospitality packages were made available for 9-12 September, costing between £399 and £499 per person, with a minimum booking of one table for ten guests.
Event understands 60 tables had been sold for the festival - a total of 600 guests - amounting to approximately £275,000.
Festival picnic tickets were also available at £105 per person to the public.
A spokesperson from the Tower of London said: "We are disappointed to learn of the liquidation of International Opera Productions. Recent conversation with the company suggested advance ticket sales were being well received.
"Historic Royal Palaces, the independent charity that cares for the Tower, was originally contacted by IOP in early 2012 to hire the moat for this production. An agreement was subsequently reached whereby Historic Royal Palaces would receive a fixed commercial fee for use of the space, and the first instalment of that fee was due to be paid in June 2013.
"Historic Royal Palaces were not otherwise involved in the event, however we understand the disappointment that will be felt by those who had booked to see this event."
As of 16 May, ticketing websites Viagogo and Eventality were still promoting tickets and packages for the event.
Palmer-Jeffery, chief executive of IOP, is also the owner of Worcester-based venue Laughern Hill. He previously headed up , a company which went into voluntary liquidation in January 2009.
In a statement to Event, Palmer-Jeffery said: "This is a very upsetting situation for all concerned. The London Opera Festival concept was extremely well received by potential sponsors and clients in the City. However, owing to the unexpected 'triple-dip' recession, the sales have not been resultant and I was forced to make the difficult decision of appointing liquidators."
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