mobanmarketEditor’s note: On May 5 around 2:40pm, JD Events sent a letter to 2020 AXPONA exhibitors and sponsors outlining a plan to apply 100% of 2020 exhibitor payments to future shows, with 50% credited to the 2021 show and 25% to each of the two subsequent shows.
See below for the original story published 30 April.—Jim Austin
At 11am EDT on April 30, JD Events, the company that produces AXPONA announced its cancellation of the 2020 AXPONA in separate letters to exhibitors and sponsors, ticket holders, and the audiophile community. The show had previously been postponed from April. The announcement ends a week of industry-wide speculation stirred by an open letter sent out April 23, so far signed by at least 85 members of the hi-fi industry, demanding cancellation of the show and a refund of exhibitor investments.
Signed by Joel E. Davis, the founder and CEO of event sponsor JD Events (JDE), and Jenabeth Ferguson, Vice President and Event Director, JDE’s letters acknowledge that, “during these COVID-19 disrupted times . . . so many businesses are hurting, the future is unpredictable, opinions are mixed and emotions on all sides are strong. Ultimately we must err on the side of caution and the concern for human safety so it is with a heavy heart for us to announce that AXPONA 2020 has been cancelled.”
Apart from the cancelation, the big news is that JD Events will not offer refunds to exhibitors. “Our exhibit space contract language does not obligate JDE to pay refunds if the event is cancelled due to circumstances beyond our control,” the letter states. “The pandemic could not have hit JDE at a worse time. Virtually all deposit monies were spent on producing and marketing the April show, including salaries, overhead and other service providers. Due to the havoc wrecked upon AXPONA and our entire business, JDE is simply not in a position to pay out refunds.”
JDE asks for “some time to fully assess the current damage to JDE and to pursue additional sources of funding to help us bridge the gap to 2021 and beyond.” Over the next several weeks, the company pledges to devise a plan that will allow 2020 exhibitors to rebook their same space while rolling a portion of their 2020 deposits forward. That amount will be determined “in the weeks to come” as JDE assesses its ability to strengthen its financial decision.
“We know everyone is hurting right now,” states the letter to ticket holders. “Many businesses in many industries are being hammered by the impact of this pandemic. JD Events, the producer of AXPONA, in particular is facing a financial calamity due to the disastrous impact on tradeshows. Many expenses have already been spent on the show that we will not recoup.”
The letter to industry members details JDE’s losses. JDE describes itself as small privately held business and says it does not carry business interruption insurance that covers communicable diseases, and that it has lost all that is has invested in all of its 2020 shows in three different industries. The letter says the company is applying for Small Business Association PPP and disaster relief loans “for a temporary lifeline as well as pursuing all other avenues of raising capital.”
Davis also states that high end audio shows “are not highly profitable,” and that JDE “chose to invest boldly in the outlier idea of building a world-class event comparable to Munich in North America.” This included a signed long-term commitment to the Schaumburg Convention Center & Hotel.
JDE says that it has been forced to “let good people go” and slash salaries. “We are deeply invested in and committed to this industry long-term,” Davis writes. “I hope you appreciate my candor even if you don’t like what you hear and we hope you are willing to work with us as all industry stakeholders must do in hard times. Even though this is a time when we are required to be distant from each other I believe in the long run that this experience will bring us closer together.”
JD Events offers ticket holders two options: A full refund that, if made in writing by June 1 to jenabeth@jdevents.com, will appear on credit card statements within 7-10 business days of receipt; or the gift of a free companion ticket in return for rolling over the ticket price to 2021. Information on how to register for the companion ticket will be distributed in early 2021.
NEXT: AXPONA Canceled; No Refunds for Exhibitors JD Events Letter to Exhibitors and Sponsors »
ARTICLE CONTENTS
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AXPONA Canceled; No Refunds for Exhibitors JD Events Letter to Exhibitors and Sponsors
AXPONA Canceled: Letter to the Community
AXPONA Canceled: Letter to Ticket-Holders
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