The firm behind the disastrous Severn Boat Festival is set to be placed into liquidation after losing thousands of pounds on the event.

Almost 100 creditors are owed money after Worcester Events Ltd made a loss of between £70,000 and £80,000 on the Severn Boat Festival - held on Pitchcroft racecourse from Friday, July 29, to Sunday, July 31.

Optimistic organisers had hoped to attract 45,000 visitors, claiming it would become the biggest boat festival in Britain. It had boasted craft and riverboat displays, river races, live music and craft stalls, among other attractions.

But only 16,000 attended, with organisers blaming the bad weather for poor numbers.

Several stall-holders and visitors were also critical of the event, with traders leaving before it had ended.

A total of 93 creditors are now owed money and a meeting is due to be held at Fownes Hotel in City Walls Road on Thursday, September 8.

Speaking to the Worcester News yesterday Richard Hemmings, manager of accountants Smith and Williamson in Worcester's St Swithins Street - appointed liquidators - confirmed the company was being wound up.

He couldn't say exactly how much was owed as directors are currently sorting out the books.

Yesterday Worcester Events Ltd's Farrier Street offices remained closed, with bars over the window. Staff at Connexions Herefordshire and Worcestershire opposite said they had not seen anyone there for several weeks and presumed they had gone on holiday.

Festival trader Julie Tonkin of Cradley Heath Canal Art By Julie said she was not surprised by the news.

She said organisers attempted to pick up on the success of the national boat festival which came to Worcester in the early Nineties.

She added: "I saw the amount of outlay that was going on - there were lots and lots of toilets which were underused, they had a band to pay for and entertainment so I can imagine it was quite a lot.

"It was over-publicised and the crowds just didn't turn up - I did better than most traders but some complained at the time about the lack of people.

"I think it was over-optimistic for the organisers to imagine they could attract so many people."

Worcester Events Ltd, of Bilford Road, Worcester was formed in January last year by director Chris Carless and Andy Lee and signed a six-year deal to hold the festival in Worcester.

And Ben Grove was appointed as company secretary and sales director earlier this year.

Despite attempts to contact them yesterday, the directors were unavailable for comment. Chris Harvey, policy and lobbying manager at the Chamber of Commerce, Herefordshire and Worcestershire, said: "The Chamber of Commerce is always sorry when any local business gets into difficulties.

"This company was organising the Worcester Boat Festival, in July, which was a great promotional opportunity for Worcester and its riverside.

The organisers brought along winners of a competition associated with the Boat Festival to a highly successful Chamber networking event held on Friday, July 29, in the Grandstand at Worcester Racecourse.

"However, the boat festival would appear to have suffered because of some adverse weather.

"The principle of promoting the riverside however is something the Chamber of Commerce has long supported as one of the ways of boosting tourism businesses around the Worcester city area."