THE future of arts events in the city was thrown into disarray yesterday with the shock news that Chester Festivals is to go into voluntary liquidation.

Since 2009, Chester Festivals has been the organisation responsible for the programming and delivery of the city’s Summer Music Festival, autumn Literature Festival, GobbleDEEbook (the Children’s Literature Festival), and the Chestival summer events programme.

The organisation has promised that this October’s literature festival – the programme for which has already been announced – will go ahead as planned.

What happens after that, however, remains unclear after the release of a statement from Chester Festivals yesterday afternoon which said:

“Chester Festivals Ltd is to go into voluntary liquidation as a result of ‘acute and irreversible’ financial difficulties.

“The decision was taken by the charitable company’s board of directors after a detailed consideration of the current financial situation.”

Sue Harrison, chairman of Chester Festivals Ltd, said: “Sadly, after considering all advice available, we have unanimously reached the inescapable conclusion that there was no other option to us. The company is not in the position to continue trading.”

Ms Harrison explained the 2012 Literature Festival – which runs from October 14-28 – is being administered directly by Chester Performs, the organisation behind the successful Grosvenor Park Open Air Theatre project.

She added: “Like many organisations across the country, the very poor weather in June and July badly affected attendances at our outdoor programme of events, some of which we had to cancel, which impacted heavily on our box office income.”

A non-profit making organisation, Chester Festivals Ltd is a registered charity and company limited by guarantee. It employs five members of staff.

Financially, its income has come from grants from Arts Council England and Cheshire West and Chester Council, box office receipts, sponsorship and donations.