The Vibiscum festival leaves a slate of public money – rts.ch

The cancellation of the third edition of the Vibiscum festival had significant repercussions on the Riviera, with creditors, including public entities, losing at least 300,000 francs. An RTS investigation reveals that the financial situation of the festival was already critical by the end of 2023.

Due to insufficient ticket sales, the Vibiscum festival canceled its third edition this spring, just days before its first concerts. By the end of August, the Vibiscum Festival Foundation had been declared bankrupt.

The total amount of claims is unknown, but public entities have been impacted. The foundation owes over 130,000 francs to members of the Vaud Mobilis tariff community. The Riviera Intercommunal Tourist Tax Commission seeks to recover the 72,000 francs advance subsidy it had paid. Since 2023, the Riviera Security Association has also been attempting to collect two invoices totaling over 120,000 francs.

Financial losses already alarming in 2023

Sarah Dohr, a municipal councilor of the Vevey-Libre party, attempted to warn public authorities: “The warnings were evident since the second edition, which took place in 2023. As a citizen and municipal councilor, I am truly disappointed that the alarm signals we raised were ignored,” she expressed on Thursday in the 7:30 p.m. news.

A document consulted by RTS indicates that as of December 31, 2023, the provisional accounts of Vibiscum already showed a loss exceeding 1.8 million. So why proceed with a third edition? The festival was hoping it would help restore better financial health.

Pull the plug sooner

According to lawyer David Raedler, an expert in commercial law, the timing of the festival’s decisions raises concerns: “Given the already burdened situation that existed in 2023, not notifying the judge of potential over-indebtedness could lead to liability and greater harm.”

The Vibiscum Festival Foundation is under the oversight of the foundation supervisory authority of Western Switzerland. Correspondence that RTS accessed under the Vaud information law reveals that the day after the festival’s cancellation, the authority requested a comprehensive report.

Shortly thereafter, a commissioner was appointed to clarify the state of the accounts. Finally, on July 5, the foundation supervisory authority petitioned the judge for bankruptcy. This is an extremely rare action, highlighting the financial condition of the foundation.

The bankruptcy proceedings are expected to take months, if not years. The sole member of the foundation board declined to comment due to the ongoing procedure.

>> Listen again to the interview with William von Stockalper, founder and director of the Vibiscum festival, in La Matinale of May 22: What about the reimbursement of Vibiscum Festival tickets? Interview with William von Stockalper / La Matinale / 6 min. / May 29, 2024

Leandre Duggan/miro

The Cancellation of the Vibiscum Festival: A Deep Dive into Financial Irregularities on the Riviera

The cancellation of the third edition of the Vibiscum Festival has sent shockwaves through the Riviera, culminating in notable financial repercussions. Creditors, including public entities and local businesses, are collectively set to incur losses totaling at least 300,000 francs. An investigation by RTS has unveiled alarming details regarding the festival’s precarious financial state even before the cancellation occurred.

Cancellations and Bankruptcy: The Final Countdown

The cancellation of Vibiscum Festival’s much-anticipated third edition this spring came just days before its scheduled performances. The decision was primarily attributed to inadequate ticket sales, raising questions about the festival’s operational viability moving forward. By the end of August, the Vibiscum Festival Foundation was officially declared bankrupt.

Exploring Financial Claims Against the Foundation

While the total amount owed by the foundation remains undetermined, the repercussions extend broadly, impacting several public entities:

• The foundation is indebted to over 130,000 francs to members of the Vaud Mobilis tariff community.
• The Riviera Intercommunal Tourist Tax Commission has sought recovery of a previously granted subsidy of 72,000 francs.
• Since 2023, the Riviera Security Association has been attempting to collect two unpaid invoices exceeding 120,000 francs.

Financial Losses Reveal Critical Issues in 2023

The alarm bells were ringing well before the festival’s cancellation. Sarah Dohr, a municipal councilor from the Vevey-Libre party, expressed her frustration at the lack of action taken by public authorities. “We saw red signals as early as the second edition in 2023. As a citizen and municipal councilor, it pains me that our warnings were ignored,” she articulated in an interview aired on RTS at 7:30 p.m.

RTS has reported on a document dated December 31, 2023, indicating that the provisional accounts of the Vibiscum Festival showed losses exceeding 1.8 million francs. So why push forward with a third edition? The festival organizers were banking on a successful run to restore fiscal stability, a strategy that has clearly backfired.

The Question of Timing and Responsibility

Commercial law expert David Raedler raises serious concerns about the lack of timely intervention: “Given the burdensome financial situation evidenced as early as 2023, failure to announce a potential state of over-indebtedness could lead to liability issues and exacerbate the situation.”

The foundation was placed under the supervision of the foundation supervisory authority of Western Switzerland following the cancellation. According to correspondence obtained by RTS under the Vaud information law, the supervisory authority demanded a comprehensive financial report immediately after the festival’s cancellation.

The Path to Bankruptcy and Its Implications

Subsequent to the festival’s cancellation, the supervisory authority appointed a commissioner tasked with scrutinizing the foundation’s financial state. On July 5, the authority escalated matters by petitioning for bankruptcy — a grave measure that reflects the severity of the foundation’s financial woes.

The bankruptcy proceedings are anticipated to extend over several months or possibly years, raising concerns among stakeholders looking to recoup their losses. Attempts to contact the sole member of the foundation board yielded no responses due to the ongoing legal procedures.

Impact on the Riviera Community

The Vibiscum festival’s fall from grace is more than a financial blunder; it carries heavy ramifications for the Riviera as a whole. The financial implications stretch beyond individual creditors, extending outwards, affecting local merchants, service providers, and the community’s reputation as a host for cultural events.

• Loss of Credibility: The cancellation has put a dent in the credibility of the Riviera as an events destination. Festivals rely heavily on trust and community support, and the Vibiscum’s failure could lead to skepticism regarding future events.
• Job Losses: A festival typically employs numerous local workers, from event staff to vendors. The cancellation further intensifies economic stress in the community.
• Public Sentiment: Events like Vibiscum often foster a sense of community and belonging. Their cancellation can diminish local morale and enthusiasm for future events.

Lessons Learned: Future Precautions and Strategies

The downfall of the Vibiscum festival serves as a cautionary tale for future event organizers and public authorities about the need for robust financial oversight and transparency. Here are some lessons to be considered:

• Financial Audits: Regular financial audits can help assess an event’s financial health and prevent potential crises.
• Community Involvement: Engaging local stakeholders throughout the planning process can provide visibility into community preferences and ticket sales potential.
• Transparent Communication: Open lines of communication with the public and stakeholders during early signs of trouble can mitigate backlash and assist in crisis management.

The Ripple Effects of the Vibiscum Festival Cancellation

The cancellation of the Vibiscum festival will have ripple effects that stretch far beyond financial losses. The incident highlights critical issues within the festival framework, from financial mismanagement to communication breakdowns, urging immediate attention and corrective actions. As discussions around recovery and future planning unfold, local entities must prioritize transparency and fiscal responsibility to restore confidence and enthusiasm among community members.