Petition to save Lion Arts, live music companies as bankruptcy looms

Steven Marshall has rebuffed a venue’s public plea for help after it complained the government was collecting rent while ignoring the plight of the live music business.

Concert and live venue group Five Four Entertainment has already received more than $300,000 in state Covid grants and assistance, Premier Steven Marshall said in a letter to the company.

On Wednesday, Five Four owners Craig Lock and Ross Osmon launched a public petition asking for a $400,000 state government grant to save its businesses from bankruptcy, and another $100,000 with a five-year lease extension to keep the Lion Arts Factory venue open.

In response, Mr Marshall wrote on Friday to Mr Lock that Five Four had already received rent relief for the Lion Arts Factory worth $102,949, with another $25,000 in costs waived.

Three of the companies’ entities had also received a total of $84,000 in business support grants, and another $110,000 in pandemic grants from the Music Development Office.

“I trust this response has provided you with the confidence that my Government is committed to supporting your businesses along with the broader music industry in South Australia,” Mr Marshall wrote.

Premier Steven Marshall at La Moka announcing small business support in August. Picture: Tom Huntley

The letter also stated that Five Four had been offered a 12-month extension on its Lion Arts Factory lease, until December 2022, with a rent deferral plan for the final three months of this year.

“We all look forward to the day which is fast approaching where the state will be at the 80 per cent vaccination point,” Mr Marshall said in the letter.

“That will enable us to further ease restrictions to support businesses.”

On Wednesday, live music and event company the Five Four Entertainment group called for urgent assistance to save its businesses, which it said are on the brink of collapse.

It is asking for a $400,000 state government grant for Five Four to retain staff, absorb ongoing financial losses and run events when restrictions are relaxed, and another $100,000 with a five-year lease extension to keep the Lion Arts Factory open.

In an open letter, company founders Lock and Osmon launched a public petition calling for greater assistance.

“Since Covid-19 hit Australia in March 2020, these businesses have been severely affected, with trading levels plummeting to between 0-10 per cent of our normal operations,” Mr Lock says.

“Five Four Entertainment and Lion Arts Factory, are six months or less away from bankruptcy and closing.

Five Four co-founders Craig Lock and Ross Osmon at Lion Arts Factory. Picture: Dean Martin

“To make matters more impossible, we are still being charged 100 per cent rent on our lease on the Lion Arts Factory from our landlords, the South Australian state government, despite state-based restrictions making it nearly impossible to trade.”

The company’s lease on the venue is due to expire in December but it has received no response on a long-term extension, despite 18 months of discussions with the Department of Premier and Cabinet.

Lock and Osmon said that, before the pandemic, Five Four Entertainment, its club night touring business Plus One Co and Lion Arts Factory collectively employed the equivalent of 24 full time staff, generating $35 million for the state economy and $6m in tourism.

During the past 10 years, the company has presented two of the state’s major music events, the Spin Off Festival and St Jerome’s Laneway Festival, as well as Adelaide tour dates by international artists including Childish Gambino, Lana Del Rey and The Wombats.

In their letter, Mr Lock and Mr Osmon said support packages for live music businesses and festival operators in other states “far exceed what has been done in SA”.

“So, we are calling on the industry and public to help support us by aiding us in our call,” they said.

The petition is online at chng.it/Z8wKKzX6VJ