Arena Management gone into receivership
The operator of the Sydney Entertainment Centre has gone into receivership after sustained losses caused by the economic downturn.
Arena Management Pty Ltd said a secured creditor who is owed $1.7 million has called in Andrew Wily and David Hurst of Armstrong Wily Chartered Accountants as receivers and managers of the company.
The unnamed creditor holds a charge over Arena Management's assets as security for the loan.
Arena Management chairman Kevin Jacobsen said the company lost money due to the economic downturn and due to its failure to sell or assign the SEC lease.
He also blamed the venue's owner for a lack of flexibility in adjusting lease terms to reflect the downturn.
"Ultimately this is a loss for the Sydney public," Mr Jacobsen said in a statement.
"The SEC is the beating heart of live entertainment and culture in Sydney, presenting a greater variety of large-scale concerts and events than any other venue."
Arena recently paid for a $4.5 million refurbishment, so the venue is in pristine condition, he said
"The venue's staff and management are highly regarded.
"It's a real pity the venues owner could not find a way clear to adjust the Lease conditions to reflect the sharp and unexpected market downturn."
Mr Hurst said it was business as usual for the venue while the company worked through its difficulties.