Kylie Minogue's German Tour Promoter in Financial Trouble

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Warner Bros. Records

Kylie Minogue

Slow ticket sales for Kylie Minogue's canceled "Kiss Me Once Tour" in Germany have forced promoter CT Creative Talent GmbH to file for creditor protection. This has been confirmed by lawyer Thomas Kühn, CT's insolvency administrator.

The cancellation of the Backstreet Boys tour in the early summer on account of weak ticket sales had already left a large shortfall in the tour promoter's budget. In the case of Minogue, 12,000 out of a total of 68,000 tickets had been sold for the tour, which was to have taken place between Oct. 22-28, according to the insolvency administrator. Speaking with Billboard in Cologne, Kühn stated: "We are currently exploring the legal options -- if necessary via the courts -- which we have for recovering the advance paid to Kylie Minogue. As the provisional insolvency administrator, I am under a duty to do this. Whatever else, we are convinced that no fees will be paid if there is no performance."

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The singer's German fans are outraged: "I'm done with Kylie Minogue," is a typical sentiment on the Ticketmaster online forum. Explains Kühn: "When I was appointed provisional insolvency administrator, I immediately made sure that the ticket handlers had sufficient cash to refund returned tickets. Holders of tickets bought before the company filed for creditor protection on September 11, 2014, will doubtless have an opportunity in the foreseeable future of applying for a refund of the amount paid."

Proceeds from the sale of tickets came to EUR 840,000. However, according to sources close to the company, investments in the four concerts in Germany alone were valued at EUR 1.4 million. Kühn says that Minogue's cancellation came as a complete surprise to him and Lanxess Arena manager Stefan Löcher in Berlin, stating that there had been intensive discussions with the artist's management revolving the question as to how the tour was to be funded given the shortfall from lagging sales. Up until Minogue's cancellation, Kühn estimates that only around 20 percent of the seats at the arenas had been sold.

Instead of a refund, Ticketmaster has already offered German fans compensation in the form of tickets for Minogue's concerts in Poland, Lithuania, Latvia and France, which are taking place between now and Nov. 17. Sources close to fans are also indicating that a platform for those who have bought tickets for the now canceled tour may be set up on the Internet to exert pressure on Kylie Minogue. The cancellation of the Backstreet Boys concerts due to slow ticket sales in Germany had already triggered strong protests. This prompted Backstreet Boys and Ticketmaster to jointly pay compensation to the ticket holders. According to well-informed sources, no decision has yet been made in Minogue's case. She is currently on tour until Nov. 17, with the final concert to be held in Zurich, Switzerland.

With over 120 million tickets sold, the German live entertainment industry generated total revenues of EUR 3.8 billion in 2013.

Kylie has now posted a message to her German fans on her website: "German Lovers, I am extremely disappointed that due to financial difficulties of the German promoter CT Creative Talent GmbH, I am unable to perform the scheduled shows in Cologne, Munich, Berlin and Hamburg. The Administrator who is now controlling CT Creative Talent GmbH, is unable to confirm that we have the venues and facilities needed to be able to put on the shows. On my behalf, my management team at Roc Nation are trying to work out a way that we may be able to make up for the disappointment, both to the fans who have purchased tickets, all of my creative and technical team on the KMO tour and also myself. I have always had great support in Germany from a loyal and loving fan base and I can’t stress enough how difficult and disappointing it is to be ready to play the shows and to have been let down at the last minute. CT Creative Talent GmbH is not the promoter for any of the other shows on the KMO tour outside of Germany and therefore this does not affect, in any way, any other shows. Please keep an eye on this space so we can update you all with any developments."

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