The truth behind Gatecrasher is unfolding before our eyes. A story of millions of pounds of debt, hundreds if not thousands of people in the music industry affected, together with business and services around the world. How did a super brand come to such a pitiful demise?
The catalogue of events listed below starts exactly one year ago, with a debt encumbered Gatecrasher entering administration, and rising like a Phoenix the very next day. What follows are public verifiable facts, thanks to the digital age they are easily accessible and have been curated together to form this, a true overview of the impending fall of former super brand Gatecrasher.
August 2013, Gatecrasher enters ‘pre-pack’ Administration.
After amounting large operating losses of over £1.1M, and accruing £3M in debt to Barclay’s Bank, and a further £500K in unpaid Tax.
Entering administration also involved the closure of Gatecrasher Leeds (BED Club).
It was later announced that Gatecrasher also owed £2,081,840 to 233 Creditors. Including the city council at £43K, Cannock Electrical Installations at £43K, npower at £133K, a large amount to a print company – and of course the critical staff, DJs, artists, promoters, managers and many within the music industry – those people that had helped establish Gatecrasher as a global brand.
August 2013, Gatecrasher (Birmingham) Ltd Formed.
With all previous debt under administration, a new Ltd company with a clean slate was formed and financed. Some clubs reopened and Gatecrasher continued.
You would think that such a move would result in a new strategy, a fresh start – but it seemed that the management, correction – the owner – had other ideas.
October 2013, University of Birmingham’s Guild of Students Boycott Gatecrasher.
After being owed £28,000 the student body announced that “Following the move into Administration of TipTopTap Limited, formerly known as Gatecrasher, the Guild met with the owner over the summer in order to try and settle the outstanding debt of £28k. It was agreed that Gatecrasher would make a payment towards clearing the outstanding debt as gesture of goodwill. This has not occurred. The newly formed Gatecrasher nightclub has since indicated that they are prepared to pay a contribution to the outstanding debt. However this is wholly dependent on the Guild entering into a new agreement. The Guild is not prepared to consider a future relationship until the outstanding debt is paid in full. The Guild would also like to clarify that Gatecrasher have never financially supported the University. The Guild of Students has been in a commercial relationship which has been mutually beneficial for both parties.” Read more
February 2014, Gatecrasher creditors will not get compensation after £2m losses.
All of the people owed money from the 2013 administration will not get paid. Meanwhile plans to open Gatecrasher Ibiza continue.
This begs to ask the question – if the club is knee high in debt, how did they manage to open Gatecrasher Ibiza? why wasn’t it used to settle the debts? It seems as though those outstanding ‘debts’ were put to ‘good’ use.
In the few weeks since Gatecrasher Ibiza opened, what’s all happened?
- Créche has terminated its residency at Gatecrasher Ibiza with immediate effect.
- Speakerbox and MistaJam.
- Kisstory do the same
- Bedlam also …
- Eddie Halliwell cancels
- Afrojack, Danny Howard, Craig Connelly, Felix Leiter, all cancel
- Size Records do the same most recently…
Remember, Gatecrasher Ibiza opened 2 months ago, these are the DJs and Companies associated all cancelling within weeks, they’re cancelling right now.
Unconfirmed reports are rolling in.
- People have arrived on Ibiza looking for the Gatecrasher owner, as payment for Eden is due.
- 60 people in the club, all left within an hour and demanded refunds.
- Live comments on Radio 1 about Gatecrasher not paying DJs.
- No staff in Ibiza paid for over a month. Nobody in the Birmingham club has been paid either.
- Events are being listed where the DJs have no knowledge they are scheduled to play.
Daily more people are cutting all ties with Gatecrasher, we are struggling to find anybody left. More individuals are also speaking up on social media to say Gatecrasher owe them money, people affected in the last few months, and still more from the past few years. Every day we hear of another disgruntled employee, artist, promoter, or manager expressing their anger towards this once iconic brand.
So what has been going on behind the scenes?
Several people who we will keep anonymous have contacted Beatsmedia to share their stories. The stories took a common tone “I am owed [large amount of money], I still haven’t been paid”, before starting to go in to more detail. Our sources are not doing it just for themselves but have become the voice of several others who are afraid to speak up – by doing so they have been slapped with defamations, open threats, and even legal action.
We hope these serve to highlight some of the things that go on behind the scenes of one of the world’s most once-loved and well-known brands.“
“I worked with Gatecrasher at various clubs for many years. I saw DJs, Security, Managers, Promoters, nearly everybody get ripped off. I am also still owed several thousand pounds.”
“Staff were only paid after they became an annoyance, anybody who didn’t pursue payment actively simply did not get paid.”
“Some staff like people who delivered flyers, would be taken on for a ‘test’ to do the work unpaid, before being sacked and replaced with yet more ‘tests’.”
“I worked in Gatecrasher for a few years, it started off as cash payments, then later as cheques. The gap between cheques became greater and often missed some of the money due. Before you know it your are due a few thousand and the company is in Administration, your money is lost.”
“If after the administration the company had folded nobody would care so much. But the fact that he still had millions in personal bank accounts and assets under many limited companies – while purposefully continuing to withhold payment from people old and new – that annoys and upsets everybody involved.”
“Many people also said that he [Simon Raine] stopped all card payments and only accepted cash before the administration last year, laundered that cash from the business so it looked on paper that the venues weren’t making money. He also removed expensive equipment from the venues before they were valued, this gave them a lower valuation so they could be bought back at a fraction of the true cost, overnight. To the public eye nothing had happened.”
“Even the drinks behind the bar were often fake, in 2012 customs seized over 600 bottles of fake vodka from Gatecrasher Leeds.“
Thanks to a digital age…
Our digital age is giving a voice to people affected, and they are speaking up. Gatecrasher however are doing the opposite, a big mess spanning many years appears to be drawing to a close.
Gatecrasher’s Cameo/BED in Watford and Leeds are closed. Ibiza is on it’s last legs after only 2 months. From what is stated we can predict that soon only the ‘home’ Gatecrasher Birmingham will exist, perhaps not for long, as the owner owes millions of pounds and continues to rack up even more debt.
Pride comes before a fall – if Gatecrasher’s Owner is riding on his high horse, it may not be for much longer. The outright removal of support from artists towards the company is more than enough proof that Gatecrasher IS NOT the iconic brand that it used to be.
Gatecrasher’s statement can be found Here
Followed by our reply…
BEATSMEDIA STATEMENT, 2014-08-08.
Beatsmedia have been contacted by ‘The Wilkes Partnership LLP, Birmingham’ acting on behalf of their client Gatecrasher Ltd, to instruct the removal of this article, as they state it contains allegations of their client Gatecrasher Ltd which are ‘untrue defamatory and malicious’.
The pivotal word being ‘untrue’.
The article in question was written on behalf of individuals who claim they have been unjustly treated by Gatecrasher. Following publication of the article, many businesses and individuals have came forward with further allegations, or have provided independent corroboration.
It is our understanding that several of those affected intend to prove their allegations to be true in a court of law, and hold Gatecrasher to account for their actions. We also understand that larger traditional media outlets are working with those affected to prepare more comprehensive reports.
At Beatsmedia we do not wish to detract from the efforts of those affected, remove their voice, nor inhibit any progress they seek to make. We firmly believe that the issue at hand is the People vs Gatecrasher, rather than Gatecrasher vs Beatsmedia. As such we have chosen to remove several choice words from the article, whilst keeping it’s substance intact.
Here’s another statement from the building owners, where Gatecrasher is currently housed in Ibiza.
And lastly, a handful of websites that have also covered Gatecrasher news and content regarding this post:
- IVoice: Gatecrasher Ibiza The sad fall from grace of a global brand http://www.ibiza-voice.com/story/news/6433
- Mixmag: Gatecrasher statement Administration & debt http://www.mixmag.net/news
- Trancefixxed: http://www.trancefixxed.co.uk/news/gatecrasher-fights-back/
- ibiza-spotlight: Eden property owner not happy with Gatecrasher http://www.ibiza-spotlight.com/night/2014/09/news-eden-property-owner
- YourEDM: How Gatecrasher Lost More Than Just Respect http://www.youredm.com/2014/08/
- Theibizan: http://theibizan.com/news/gatecrasher-booom-worker-woes/
- Ibiza-Spotlight: http://www.ibiza-spotlight.com/night/2015/01/feature-ranting-ravers-season-forecast