Manchester Pride has been put into voluntary liquidation. The organising team has issued a statement, citing that the festival is no longer financially viable. It says that a combination of rising costs and declining ticket sales coupled with an unsuccessful bid to host Euro Pride and “an ambitious refresh of the format” led to its decision.

Manchester Pride’s board of trustees were under pressure following media reports earlier this week that some freelancers, performers, and suppliers were still waiting for monies.

The statement read: “It is with enormous sadness that we announce that Manchester Pride has started the legal process of voluntary liquidation.

“We regret the delays in communicating the current situation; however, we were keen not to jeopardise financial opportunities while our discussions were ongoing. We were proactive and determined to identify solutions to the financial issues. We’ve been actively working with several partners, including legal and financial advisors, to do everything we could to find a positive solution. We had hoped to be able to find a way to continue, and, most importantly, to support our artists, contractors and partners. Despite our best efforts, sadly, this has not proved to be possible. We are sincerely sorry for those who will now lose out financially from the current situation.

“The volunteer board of trustees are devastated at this situation and sad to share that our staff team will be made redundant. We, along with the team, have put our hearts and souls into the celebration and community activities over two decades and are very distressed at the position in which we find ourselves. We would like to sincerely offer our thanks to all of our staff, volunteers and supporters who have contributed so much to Manchester Pride over the years.”

The Manchester Pride team has now handed over the details of suppliers and artists who are owed money to the liquidators who will be handling the affairs of the charity.

Gurpreet Sanghera, partner at leading media and entertainment law firm Simkins LLP, said of the news: “Manchester Pride’s collapse marks the loss of a major cultural moment in the national calendar and is a real blow to the LGBTQ+ community.

“It is also a stark reflection of the crisis gripping both the charity and entertainment sectors, as soaring costs and shrinking public funding push even well-known institutions to breaking point.

“For performers, suppliers and staff, the fallout is immediate, with unpaid fees, unanswered questions and uncertainty about what comes next. The charity’s trustees now owe their primary duty to creditors, and while some may recover part of what they are owed, unsecured creditors – including performers – are desperately unlikely to see much back.

“This serves as a warning shot for other charitable organisations: in today’s climate, managing costs, cashflow and contractual obligations have never been more critical.”