‘Extravagant' party before entertainment company's collapse

News.com.au

5 days ago

The 'extravagant' party to celebrate the opening night of a big name musical included a Cadillac in the centre of the room, cocktails and go-go dancers – but behind the scenes the company was staring down potential troubles.
Videos of the night reveal generous platters filled with meats and vegetables, dipping sauces and breads and cheeses, as well as people drinking and talking as they surround a Cadillac while colourful lights flash around the room.
The party had been put on by Australian producer David Venn and his company to mark the start of Elvis: The Musical Revolution's season in Sydney.
But a year later the company called David Venn Enterprises spectacularly collapsed owing $7.5 million, with Mr Venn pointing to ticket sales not meeting expectations and broader financial risks such as high operating costs and unpredictable revenue leaving little margin for error in the live entertainment industry.
What wasn't known to those at the glamorous August 2023 party, including the cast and crew who ended up being owed tens of thousands of dollars each, was that David Venn Enterprises was potentially trading insolvent already in June that year, according to a liquidator's report.
Now another artist Sam*, who was involved with the Elvis production, has come forward to raise questions about the flashy display, given the company's financial troubles that later emerged.
'The Elvis opening night was wild for a producer compared to things I've done before – it's rather extraordinary,' Sam, who asked that their real name be withheld, told news.com.au.
Sam said the party, held at the Sofitel Wentworth had go-go dancers, as well as the Cadillac that had been brought into the foyer of the function rooms.
'It was further than most opening nights – it was a full produced gala. It wasn't like drinks and nibbles and chats with anyone. I was shocked – it was extravagant,' he added.
Meanwhile, an artist who previously blew the whistle on how the abrupt cancellation of the show came with just eight days notice and also asked that their name be withheld, said they remembered thinking the party was 'quite over the top'.
'In comparison, the next opening night we had there were mini spring rolls and samosas served from foil oven trays from a folding table in the foyer of the Atheneum (theatre in Melbourne),' they said.
Mr Venn, from the production company, declined to further comment on the most recent claims but previously said he regretted the impact of the company's collapse on those affected and remained committed to doing the right thing where circumstances allow.
Cast and crew faced turmoil inside the production before the company went under as an unpaid superannuation bill of $440,000 racked up and seasons in Melbourne and New Zealand faced cancellation.
Documents obtained by news.com.au also showed that just $304,000 will be returned to creditors from the $7.5 million owed after they voted to accept a personal insolvency agreement.
A government scheme paid out $744,000 in outstanding entitlements to employees of David Venn Enterprises after its collapse, news.com.au learned.
Now a big name industry player who is behind some of the country's most recognisable shows is speaking out about how he worked with Mr Venn and his company when Mr Venn was an 'up and coming producer' but felt 'bitten' after their interactions.
Vas Katos has worked in the entertainment industry for 30 years and launched his latest company Anthem in 2021.
It boasts clients such as Live Nation, festivals and iconic art institutions, invests in Broadway and West End shows and has worked on the likes of Harry Potter and the Cursed Child and SIX the Musical.
'Alarm bells' started to ring when Mr Venn's business had racked up a bill of around $400,000 with Anthem, Mr Katos claims, before the debt was slashed to half via a payment plan.
But it's not about the lost money for Mr Katos. Instead he said there is a bigger problem in the industry that he claims props up people even when debts go bad.
'It doesn't really hurt us as the money owed was relatively small as we pushed hard to bring down the debt,' he told news.com.au.
Mr Katsos thought he might be able to use his 'clout' to ensure payment, until the 'avalanche of debt came to light', he added.
'But this seems to be so unique in the theatre business and it's so highly disrespectful and immoral to be working while (potentially) insolvent but everyone in the industry seems to accept it,' he said.
'It's really not fair especially to artists who only get a gig or two a year and the production crew.'
Mr Venn previously told news.com that ticket sales for the Elvis season did not meet expectations, despite best efforts and significant marketing investment.
'Demand simply didn't materialise at the level needed to cover costs,' he said, adding he had cancelled the remaining tour to prevent further losses and risk to all involved.
He said there was a significant and unforeseen drop in ticket sales part way through the tour and strategies to improve revenue were pursued but the company's financial position did not recover in time.
Mr Katos is especially critical that Mr Venn has already launched a new outfit this year – with his mum as the company's director — called DV Live that has already staged a number of musicals.
'I just don't give young producers a go as the industry is set up to protect bad behaviour,' he said.
'That's unfortunate for the industry at large as it makes it harder for the next up and comer to work with the best agencies … If it's a one off that's OK but it has been endemic in the industry.'
Mr Katos acknowledged being a producer is high risk for anyone but said they should also be prepared that if a show is a 'disaster to cut it off'.
'If Elvis was not a success in Sydney, cut it off,' he added. 'Don't chase losses as the performers and production crew can't afford it.
'It keeps me up at night and boils my blood. People give services in good faith they will be paid – it wouldn't happen in other industries – they would be black-listed.'
News.com.au revealed that Mr Venn had told artists in a Gold Coast meeting last year that Elvis' return to Sydney had sent the company's finances backwards with the show costing $450,000 a week to operate.
Sam has also questioned whether David Venn Enterprises should have been shut down earlier.
'I feel like it was continuing because the word Elvis was in the show but ticket sales reflections should have been obvious enough about not continuing,' they said.
'It would have been much better to cancel as opposed to racking up $7.5 million in debt over a year.'
DV Live, where Mr Venn is the 100 per cent shareholder, was incorporated in February this year.
Sam claims that DV Live was launched just days before the company put on Footloose: The Musical this year.
Mr Venn previously said DV Live is a new opportunity that was started to contribute to an entertainment industry he is passionate about.
'DV Live was built with the support of industry partners, believing in the work we were achieving before the liquidation. It is only through these relationships that we have been able to get off the ground again,' he said.
'My mother was appointed as director. We are both actively working on the business daily and I continue in the role of lead producer as an employee.'
He added DV Live is a separate entity which continues to meet all legal obligations.
Mitchell Ball from insolvency firm Mackay Goodwin was appointed as the liquidator of David Venn Enterprises.
His investigations found poor economic conditions, the inability to pay statutory debts when they fell due, trading losses, inadequate cash flow or high cash use and the inability to service loans obtained were all factors that contributed to the company's failure.
Mr Venn blamed the company's collapse on struggling ticket sales amid high competition, cost of living pressures causing consumers to have less discretionary income, and licensing and creative issues with entertainment product leading to reduced sales.
The report also identified 17 transactions in the books and records of the company 'that may be considered unreasonable director-related transactions', but investigations were continuing.
Mr Venn said the liquidator's report raised matters that he takes seriously and responded to appropriately at the time.
'It's important to note that the report does not fully reflect the broader financial context at the time, including significant advance ticket sales and pending investment commitments that were expected to support the business and its obligations,' he said.
*Name has been changed