Ticket Rocket fails in bid for secrecy

Concerns are mounting about a ticketing agency’s ability to pay its debts – and its only public reply is a failed bid to keep its troubles secret.

Ticket Rocket, formerly known as Ticketdirect, has been in the spotlight since customers complained to Stuff about how difficult it is to get refunds for events cancelled due to the coronavirus pandemic.

Many customers have said the company does not get back in touch when refunds are requested.

Event promoters have also had trouble – Royal New Zealand Ballet says it chased Ticket Rocket for months for payment.

Arguably the most serious incident was legal action taken by the Palmerston North City Council to freeze $676,000 held in an account controlled by Ticket Rocket’s holding company, Fortress Information Systems.

The council said Fortress had not paid out that money after the 2020 Teams’ Champs superstocks event held at the council-owned Central Energy Trust Arena in February.

The money was usually paid out by the end of February for the annual event, but was still outstanding this month, the council said.

Speedway promoter Bruce Robertson said in an affidavit to the court he was worried about Fortress’ liquidity.

The council also presented communications in which Ticket Rocket’s director, Matthew Davey, said Fortress was having ‘‘cashflow issues’’.

The freezing order is in place until mid-july, unless discharged earlier.

Fortress unsuccessfully tried to suppress the freezing order judgment after Stuff published an article about it.

The city council and Stuff both opposed the suppression application.

Justice Rachel Dunningham noted in her suppression decision that Fortress’ lawyer, Chris Shannon, said the company took issue with many of the council’s claims, including how much money had to be paid.

He did, however, accept money was owed.

The company’s reputation could be negatively affected by claiming there was a risk it would use speedway funds to meet other debts or cashflow requirements, he said.

The council’s lawyer, Nicholas Jessen, said people, including those doing business with Fortress, were entitled to know the company had problems making payments.

Event organisers could use that knowledge to take appropriate precautions in business arrangements to ensure their money was protected, he said.

The judge said people knowing about the freezing order would have a prejudicial effect on Fortress, but there was a public interest in people knowing the company had not paid up.

Anyone looking to deal with Fortress could weigh up its 20-year track record with its current problems, she said.

Fortress also had, and would continue to have, the chance to put its side of the story, she said.

‘‘Given the media interest in this litigation, it can reasonably be expected to get coverage.’’

Venues, including Palmerston North’s The Regent on Broadway, have moved to rival company Ticketek in the meantime.

Sports teams have also had problems, with Stadium Southland trying to get refunds sorted for fans of the Southern Steel netball and Southland Sharks basketball teams, and the Hurricanes Super Rugby side has contacted police over money it is owed.

The Highlanders are partowned by Davey, who sold some of his shares and left his director’s post at the Super Rugby team recently.

His lawyer and Ticket Rocket have not responded to requests for comment.

Davey no longer lives at his last listed address. His last listed landline has been disconnected and his company’s listed address was locked when Stuff visited on Friday.