Artists ‘stunned’ after $7.5m collapse of entertainment company
People working in some of the “most precarious jobs in Australia” have been hit hard by the epic collapse of a company, while the producer is back in business.
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An Australian producer’s company collapsed owing a whopping $7.5 million with just $304,000 set to be paid back to creditors.
Concerns have also been raised that the producer David Venn has launched a new company called DV Live, with claims it is using sets and costumes from previous productions – including with names of previous cast members sewn into wigs.
News.com.au previously revealed the turmoil cast and crew faced inside the production of Elvis: The Musical as the company began to succumb to financial struggles, with an artist revealing how it “messed” with their lives.
Meanwhile, a government scheme has paid out almost $750,000 to dozens of former employees of David Venn Enterprises who had to wait up to five months to get their hands on the entitlements they were owed.
Yet a superannuation bill of $440,000 remains outstanding with artists left in the dark as to whether they will ever see the funds.
Mitchell Ball from insolvency firm Mackay Goodwin was appointed as the liquidator of David Venn Enterprises
His report, which was filed with ASIC, identified intellectual property assets associated with the company’s Cruel Intentions show, including show clips, key select images, a Facebook account, email address and website.
He noted that Mr Venn made an offer to buy the intellectual property but the Commonwealth Bank of Australia (CBA), which was owed $1.8 million, did not consent to the sale.
However, DV Live produced Cruel Intentions The Musical at the Alex Theatre earlier this year, according to its website.
“The liquidator is now notified of the Cruel Intentions performances and will look into the company David Venn Enterprises to determine if there has been an intellectual property breach,” Mr Ball told news.com.au.
Meanwhile, the artist, who asked their name be withheld, said they hadn’t heard from Mr Venn since the Elvis production was canned, but claims DV Live was using sets and costumes from previous productions.
“We could see them in promotional material – Cruel Intentions specifically – and actors in these productions have informed cast members that their costumes or wigs have previous casts name’s sewn into them,” they claimed.
Mr Venn said he had fully co-operated with the liquidators at every step of the process.
“We provided liquidators with access to company assets, outlined our future plans to them on numerous occasions, and submitted formal financial offers. We remain open to continued discussions,” he said.
Do you have a story? Contact sarah.sharples@news.com.au
The artist added the cast and crew were “all a bit stunned on how” he can launch a new company.
They are critical that Mr Venn has put on productions since Elvis and still they have not received any superannuation.
“We can’t even inquire about it, because according to the ATO he has a special arrangement with them to pay back our super but we are not allowed to know what it is because it’s his private information not ours, so he’s protected but we are not,” they added.
An ATO spokesperson said they were unable to comment due taxpayer confidentiality but it takes noncompliance with super guarantee obligations seriously.
Mr Venn said to date, no former employee has ever contacted him directly to discuss the outstanding superannuation.
“If they did, I would be open and honest with them. I understand the frustration and concern, and I remain committed to doing the right thing as circumstances allow,” he said.
He added due to limited remaining funds, the company was unable to meet all accrued entitlements, including annual leave and superannuation.
The Media Entertainment Arts Alliance (MEAA) represents members in the performing arts industry and attempted to address unpaid entitlements last year.
Cast and crew of Elvis: The Musical Revolution were told by Mr Venn that unpaid superannuation would be resolved by January 2024 but this did not happen.
News.com.au understands that in July last year the union was chasing Mr Venn over incorrectly paid wages, annual leave or superannuation.
The union was told by Mr Venn that there was an “agreed payment-plan with the ATO for one half of the outstanding or current super payments and that the ATO’s plan was to finalise the remaining half by August 2024”. But this did not eventuate.
A MEAA spokesperson said the union’s members work in some of the “most precarious jobs in Australia” and regularly enter retirement age with disproportionately low superannuation balances.
“It is therefore deeply concerning to MEAA when work is cancelled, and our members lose out on income and superannuation they were expecting to receive,” they said.
“When companies cancel productions or go into administration, MEAA canvases all possible avenues to support members and to ensure they are paid all the entitlements they are owed.”
Mr Venn said the collapse of David Venn Enterprises highlighted the “broader financial risks producers in the live entertainment sector face, often operating with high costs, unpredictable revenue, and little margin for error”.
“Despite the outcome, our intention was always to support our team and deliver high quality experiences to audiences across the country,” he added.
He added in prioritising the continuation of the tour and the welfare of employees, he made the difficult decision to focus available funds on ensuring weekly wages and entitlements like travel and per diems were paid in full and on time to all cast and crew.
“At no point were employees left unpaid for work they completed,” he said.
In February, Mr Venn launched a new entertainment company, where he is the sole shareholder, called DV Live.
It has staged productions including Thrones! The Musical Parody, Footloose: The Musical and Cruel Intentions with tickets ranging in price from $59 to $129.
Mr Venn said DV live was created to provide future employment opportunities for artists and to repair the damage caused by the collapse of David Venn Enterprises.
An individual had petitioned to have Mr Venn made bankrupt in December last year but the application was dismissed in February, a search of the National Personal Insolvency Index revealed.
It also showed that Mr Venn had entered into a personal insolvency agreement on 31 January. This means a person enters into an agreement with their creditors without being made bankrupt, according to ASIC.
A copy of the personal insolvency agreement shows Mr Venn would pay a total contribution of $304,000 over a year and a half, with annual dividends to be provided to creditors.
The payment plan includes $4000 already paid and instalments of $100,000 on 31 January, 2025 and 2026. There are also $50,000 payments in June 2025 and 2026.
Mr Venn said the repayment amount was negotiated and accepted by the relevant creditors. “This agreement is legally binding and represents a commitment to repay debts while acknowledging the financial realities we face. Details of this are confidential,” he added.
The controlling trustee’s report to creditors, who was responsible for the personal insolvency agreement, revealed Mr Venn had “successfully secured the Australian rights for several projects which will be delivered in 2025”.
“David has a number of key partners on board to support these projects, and venue and ticketing partners are confirmed. These projects will proceed and funds will be used to pay creditors,” it stated.
The report also revealed that Mr Venn “intends to continue his events production business by organising events, such as stage plays”.
“I have sighted two contracts for the production of stage plays as evidence that the debtor intends to trade his business,” the report said.
It said Mr Venn estimated he would receive an average net income after expenses of $200,000 per project.
The funds to be provided under the personal insolvency agreement would be sourced from net ticket revenues from each of the three projects and would not include income contributions, the report noted.
It added bankruptcy would make a return to creditors highly uncertain and would rely on the business performance over three years, rather than just this year and 2026.
It also revealed creditors would receive a return of $4.50 under the proposal rather than $1.40 or nothing in the event of bankruptcy.
In December 2024 there were 14 bank accounts operated by Mr Venn with a combined balance of $6074, the report revealed, but these would likely be used for day to day living expenses and was not proposed to be included in the personal insolvency agreement.
A property Mr Venn had joint ownership in was sold in February for $640,000 but the entirety of the funds would go to the bank, the report noted.
Meanwhile, Mr Ball as liquidator has made a claim for millions.
“I have submitted a claim in excess of $3 million against his personal insolvency agreement based on our investigations including insolvent trading and irregular financial transactions,” he told news.com.au.
Mr Venn said the liquidators are entitled to submit any claims they believe appropriate as part of their investigation.
“However, the financial reports available at the time of liquidation were incomplete and do not reflect the full financial context, including pending investments, advance ticket sales, and other relevant information,” he said.
“I continue to co-operate fully with the process and stand by the position that all actions taken were in response to real-time circumstances and pressures, not with intent to mislead or avoid responsibility.”
The controlling trustee report also revealed large transactions from Mr Venn’s account that may require further investigation.
During the period, 3 April 2024 to 7 September 2024, Mr Venn received total funds of approximately $322,218, the report said.
But Mr Venn explained that $222,000 was received from the business and approximately $100,218 was sourced from his personal funds and from a friend as a loan.
From that $5500 was given as a gift to his friend and the remaining funds were spent on expenses to support his event business, the report said.
“It would not be commercial for a bankruptcy trustee to investigate these transactions, as the cost of such investigations would outweigh any recovery and further, the bulk of the funds were expended,” they noted.
Mr Venn said the controlling trustee report was not accurate at the time of liquidation and doesn’t reflect the full picture.
“I have statements proving personal funds higher than this amount were invested into the business to keep it operating,” he said.
“All of these funds were lost when the company was placed into voluntary liquidation. Personal funds were contributed to support wages, production costs, and essential operations.”
Mr Ball released his final report into the company’s collapse in December last year.
He said 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 contributing to the company’s failure.
Mr Ball’s report, which was filed with ASIC, also revealed that David Venn Enterprises “may have traded while insolvent since at least 30 June 2023” and there was the potential to pursue a claim for approximately $3.5 million,
However, his investigations were ongoing and included whether there were commercial merits of pursuing such action, Mr Ball noted.
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 raises 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.
“I cannot appropriately answer questions on specific transactions or details in this context.”
Mr Venn said everything he had was invested into saving the business and the financial impacts on him personally have been significant.
“This was never the outcome I intended or imagined for others or myself, and putting the business into liquidation is one of the hardest things I’ve ever had to do,” he said.
“The live entertainment industry is incredibly dynamic and often unpredictable. Artists are typically contracted on a ‘run of play’ basis, meaning their engagement continues until the show closes, which can be extended – or shortened — based on market conditions. This is standard practice and understood across the industry, but that doesn’t lessen the disruption when plans change.”
It’s also important to acknowledge that box office trends have shifted significantly in the post-Covid landscape, he noted.
“Audiences are purchasing later than ever – within a two to four week window of the performance date or the week of – making it challenging to plan and predict,” he said.
“Our strategy, like many in the industry, focused on building awareness and driving sales during the performance period itself. We had every reason to believe that with enough lead-in, momentum would build. Sadly, the anticipated uplift in Melbourne did not arrive in time.”
He acknowledged there is a significant amount owed, and while he cannot promise immediate repayment of the full figure, he said it was his intention to pay back what he can, when DV Live is financially able to do so.
An ASIC spokesperson said they could not comment whether it had received a report on any alleged misconduct from the liquidator or whether any investigation is underway.
“Notably, individuals who enter into personal insolvency agreements are not automatically disqualified from managing corporations and may not appear on the banned and disqualified register,” they added.
There are broader signs Australia’s entertainment industry is struggling.
Another Aussie producer who had hit shows at the Sydney Opera House and major festivals also faced financial troubles when running his entertainment company.
He has been slammed by performers who haven’t been paid, leaving them thousands of dollars out of pocket, although the producer claims he is working to pay them back.
sarah.sharples@news.com.au
Originally published as Artists ‘stunned’ after $7.5m collapse of entertainment company
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