News

...that they're not offering any refunds:

https://www.stereophile.com/content/axpona-canceled-no-refunds-exhibitors

If this or any other audio show/event can be bonded, it is unconscionable that a major show like AXPONA would not have a bond to ensure refunds to exhibitors for cancelled shows/events. Alternatively, can exhibitors purchase bond insurance against a cancelled show/event? Note that the Los Angeles Audio event was cancelled just a few years ago. This happens occasionally.

It is highly likely that the contracts that JDE signed with their vendors and the AXPONA venue lacked provisions to allow refunds to JDE in the event of a COVID-19 type event.
Without capital reserves, refunds or event cancellation insurance proceeds from which to reimburse exhibitors, JDE was toast.

In hindsight everyone JDE and exhibitors should have paid more attention to their contract provisions about cancellation refunds.. But nobody could imagine the what if of a pandemic.

If JDE is to believed AXPONA is not very profitable and for whatever reason JDE is not well capitalized at this time. That in and of itself is a recipe for disaster if there is any kind of hiccup affecting the event.

From a number of postings elsewhere it appears not unexpectedly that the other big losers in all this are goodwill and trust between exhibitors and JDE. It is logical to assume that JDE did not want this to happen however good intentions will not provide refunds.

Should AXPONA survive because of exhibitor and or attendee interest perhaps looking to the way the promoter of High End Munich weathered this pandemic would be a good object lesson given that exhibitors to that event reportedly received full refunds.

It will be interesting to see if lessons learned will result in an AXPONA better able to deal with the unexpected or give large events such as this the axe.

is that if you need it you probably can't get it! Only joking somewhat.

Simply put in order to get bonding the applicant entity either has to have liquid assets or have physical assets which can be converted to cash.

Unlike insurance if a Bonding company pays a loss, they want their money back. That is the reason they want liquidity from their customer. In the absence of liquidity for the applicant entity officers/owners can post personal assets such as real estate, stocks, cash in order to be bonded.

From the brief characterization by JDE of their financial condition, I suspect bonding would have been difficult.

Event cancellation Insurance would have been a more viable alternative for conventional disruptions. However most of those polices never intend to cover a pandemic; or specifically exclude disease caused cancellations.

In my opinion this is a classic blindsided moment. This is going to be a hard lesson to learn, and surely some companies and individuals are going to suffer financially; and even close their doors.

After the understandable airing of grievances directed mostly at JDE the big question is What next?

Should audio shows adopt a new format, not in light of COVID-19 necessarily, but to focus on what value they really provide?

Stuffing gear and people into tiny rooms that sound terrible and usually playing terrible music really doesn't do the equipment justice as they're bound to sound very, very different once you get them home in your room playing your music.

Would an approach more in line with car shows be appropriate? Allow prospective customers to check out the latest and greatest from manufacturers and partner with the local dealers in the region as it travels the country.

Now it's like going to a car show, looking at a Porsche and only getting to sit in the back seat while the Porsche rep drives it around the parking lot without ever leaving 2nd gear. Leave it up to the regional dealer reps to provide a better test drive of the gear or even provide a loaner for an in-home audition.

Of the two reasons I have experienced of a show being cancelled, I will take this one any day of the week over the other excuse of "sorry business closed, owner went nuts"....if anyone recognizes my reference?