The company behind the failed McLaren Valley Festival that was originally due to take place in the Bay of Plenty next month have gone in to liquidation – and it could spell bad news for those waiting for ticket refunds.

Having called off the two-day festival scheduled for McLaren Falls Park in the Lower Kaimais citing resource consent issues, the event was rebranded as the Echo Festival and moved to Auckland's Vector Arena.

Echo Festival director Paxton Talbot on the intended site of the McLaren Valley Festival. Photo: Tracy Hardy.

However, the relocated January 11-12 music and arts event was also cancelled due to slow ticket sales, despite boasting headline acts such as The Flaming Lips and Disclosure.

And in the latest twist, a liquidation notice on Echo Festival's website has appeared, informing ticket holders awaiting refunds that 'arrangements around this process have been fraught with problems and today's development does little to alleviate that situation”.

According to organiser Paxton Talbot, the episode has been 'an ugly and saddening personal disaster” which has left him 'financially and physically broken”.

The notice reads: 'After a long and what now seems pointless struggle it is with deep disappointment we must announce that it has been resolved to place the festivals promoting company into liquidation.

'The festival and its advisors have been trying hard to identify an effective way to provide the project with a future and at the same time recover from the huge losses sustained over the last few months, but it is deemed that the task is too great.

'Having explored all possible measures and future outcomes we feel this is the most responsible thing to do and therefore have taken this action.

'We recognise there are still some people waiting for ticket refunds. The arrangements around this process have been fraught with problems and todays development does little to alleviate that situation in the immediate term.

'We are deeply sorry for that. The liquidators will be continuing the work here to resolve any outstanding issues. We are offering the liquidators as much assistance as we possibly can. All creditors will be contacted.

'Simon Dalton and Matt Kemp of Gerry Rea Partners Auckland have been appointed as liquidators and all queries regarding the festivals outstanding obligations should be directed to that office, either by email on info@gerryrea.co.nz or by telephone on: 09 377 3099.

'For this, for your part as customers and suppliers, and for the ignominious end to what was such a promising project I can only express total disappointment. For me this final stage has been an ugly and saddening personal disaster which has left me financially and physically broken.

'I am empathic with everyone who has suffered as a result of believing in this project and am grateful to all of you who invested their faith, trust, time and energy in wanting it to work.”

The original McLaren Falls Festival was cancelled in mid-October, with ticket holders given the option of attending the new event or receiving a full refund.