The Monterey Bay Blues Festival has filed for bankruptcy, effectively ending the 27-year-old music tradition on the Central Coast.
The festival corporation, Monterey Bay Blues Festival Inc., filed for Chapter 7 bankruptcy Oct. 12. Festival president Julie Paisant said the festival was about $290,000 in debt.
"At this point, the festival as it has been known for 27 years does not exist," Paisant said in a telephone interview.
"We did not get the donations or corporate sponsorships we had hoped for," said Paisant, referring to a call for community support earlier this year. "We just kept digging ourselves deeper and deeper. We've done everything. We cut expenses by 65 percent. We gave our own money (to the festival) as a board. We didn't know what else to do.
"This is not about mismanagement or pointing fingers at people," said Paisant. "This is really about the economy and where we ended up at."
The three major expenses were entertainers, venue and sound, Paisant said.
Performers were all paid for their participation at this year's festival, she said.
The Monterey County Fairgrounds, where the festival was held, was listed as a creditor with a claim of $74,262.
Other creditor balances include $33,000 for event security and management, $18,000 for an accounting firm and $14,000 for a local printing company.
In a prepared statement, Paisant outlined the factors she believed led to the bankruptcy.
"Rising costs, the downturn in the economy and a less than anticipated crowd at this year's festival left us with a large deficit," she said.
The festival did not release numbers on how many people attended the June event. There were reports of low turnout for the three-day concert.
The Chapter 7 filing will bar creditors from continuing collection efforts, said the festival's bankruptcy attorney, Jason Vogelpohl of Salinas.
A Chapter 7 administrator will assess whether there are assets that can be liquidated to pay off all or part of the debt owed to creditors.
The company lists its Echo Avenue office in Seaside as an asset.
If the Chapter 7 trustee determines there are assets to liquidate, a notice will be issued to creditors. They will have an opportunity to submit a claim with the court.
A hearing is set for Nov. 6 at The Quadrangle in Salinas. The Chapter 7 trustee will talk to festival representatives with regard to assets and debts. Creditors can attend and ask questions.
Paisant said she is so bogged down with the bad news she can't find a silver lining for local blues fans.
"I would hope people would continue to support blues music, because it's such an amazing part of our American history," she said. "If there is a blues festival that comes out, I'll be out there supporting it as everyone supported our festival."
Marcos Cabrera can be reached at 646-4345 or mcabrera@montereyherald.com. HERALD QUESTION OF THE DAY Will you miss the Monterey Bay Blues Festival? o Yes o No Go to: montereyherald.com to place your vote Herald surveys are unscientific
