The future of the Castlemaine State Festival, Australia’s longest-running regional multi-arts festival, has been secured after almost four months in voluntary administration.
The festival has been able to leave voluntary administration and continue operating through agreements struck with creditors (under a deed of company arrangement), and with the State Government. This gives the festival a chance to rebuild. These agreements help secure the future of the Castlemaine State Festival and the Goods Shed Redevelopment project.
“I’m delighted to be able to confirm to our community, patrons, ongoing supporters and arts lovers across the region, that we’re now emerging with a strong – although much more modest way of operating,” said incoming Board Chair, Chris Capper. The board is incredibly grateful that we can now get on with the job of building the foundations for a new, vibrant and sustainable festival, and the successful redevelopment of our Goods Shed Arts venue,” said Chris.
The Board of the Castlemaine State Festival Ltd resolved to send the company into voluntary administration on 26 March after financial pressures following heavy losses from the 2023 Festival. By early 2024, it became clear that the organisation was rapidly approaching the prospect of insolvency and did not have sources of revenue to sustainably support its operations at their current level in-between festivals.
Over the last months, the board has focused on getting the festival back on its feet in terms of finances and has also begun to develop broad ideas about the format of the next festival. “The board plans to announce the appointment of a new festival director in late 2024. We want to reach out to our community and supporters near and far, to join us in the festival’s revival and renewal. Your voices, your talents, and your passion are integral to the future of our festival. We are looking forward to getting you involved as soon as possible to help shape this future.”
Castlemaine State Festival is a pioneer in the regional and national arts and festival landscape. Founded by visionary philanthropist and culture lover, the late Berek Segan (AM OBE), the biennial festival will now be able to celebrate its 50th year and 25th season, in March 2026. The festival has helped shape the modern-day fabric of Castlemaine and its people, with generations of locals growing up with access to unique, exciting, high quality national and international performances and arts experiences.
“The sense of pride in being part of a small community punching above its weight in creativity is important to our community”, said Chris. “Tourists and newcomers flock to be part of this unique cultural capital of Victoria. I also pay tribute and immense thanks to Lucy Mayes, our outgoing Chair, for her extraordinary leadership and commitment over the last months as we’ve navigated the Festival’s future and the voluntary admission process”, said Chris. Lucy stepped down last week from the Festival Board.
“The past 16 months have been challenging”, said Lucy Mayes, outgoing Chair. “I have been on the board for six years and stepped into the Chair role late last year with a very clear goal to see the festival to a more secure future. I am confident that the festival has a very strong and skilled board, willing and passionate volunteers and remaining staff ready to work together with the community to take the festival to its next stage.”
The administration process has allowed time and external expertise to assess options for the Festival to restructure, to negotiate support from key stakeholders and to create a sustainable model to preserve the future of the much-loved festival and the Goods Shed Arts venue development. More reliance on community volunteers, fewer full-time staff, and direct patron and supporter funding of arts content are among the key features of the Festival’s new model.
News of the festival’s successful emergence from voluntary administration was greeted with optimism this week by the board and remaining Festival staff. It follows 12 months of extensive efforts to rescue the festival and almost four months of complex problem solving to help the company negotiate a way out of voluntary administration.
“We are so grateful for the support we’ve received from the community, patrons and government while we figured out a way to save the festival. Your support has kept us going over the past 100 days,” Chris Capper said.
Chris said that the process of restructuring the festival through voluntary administration had been tough, but necessary. This included the loss of several long-serving key staff.
In its new shape, the festival will continue to deliver a biennial festival model and complete the $6M redevelopment of the historic Goods Shed into a year-round venue, but now with fewer year-round staff resources.
Chris paid tribute to the hard work of board members and staff through the difficult period of voluntary administration. “The commitment, goodwill and skill of my colleagues on the board, many, like myself, who only joined in December last year, has been extraordinary,” Chris said. “They’ve put in many many hundreds of hours of unpaid work behind the scenes, driven by a strong love of the festival, the arts and the Castlemaine community,” said Chris.
“Our staff team have also been amazing displaying incredible commitment, professionalism and persistence, in circumstances where their own future has been unclear.”
The board is grateful to the festival’s key partners for their long term support and, especially during the voluntary administration process, including Creative Victoria, our local State Member of Parliament Maree Edwards as well as Federal Member of Parliament Lisa Chesters, and the Mount Alexander Shire Council.
Maree Edwards, MP, Member for Bendigo West said “Castlemaine State Festival has played a vital role in the creative and community life of our region for close to 50 years. The Allan Labor Government has been a long-standing supporter and we are proud to back the festival as it moves to a new operating model that will secure this incredible event for the future. I want to acknowledge the hard work the festival team and administrators have undertaken. I have so many wonderful memories from this festival and I can’t wait to make more as the team plans for next year, and beyond.”
The board acknowledges Deloitte, the company’s administrators, who worked with the board to develop a sustainable plan to help the festival emerge from voluntary administration.