Dick, you're right that I've never run a folk festival (although I have run smaller events), and if you're saying that doing so should put me under a moral obligation to be personally responsible for repaying customers out of my own pocket, while getting no personal benefit if it makes a profit, then you can be sure I never will.

Personally I don't believe that volunteer organisers should be expected to repay tens of thousands of pounds themselves should things go wrong, especially for something which may be outside their control such as a withdrawal of sponsorship. Neither do I think it morally right to favour repaying ticket-holders (who may at least have some protection under consumer law) ahead of other creditors, who may be suffering greater financial loss and actual hardship. That is why there is insolvency law, to try to repay the company's debts in a way which is fair to everyone.

Paying for something in advance is always a risk, whether buying tickets, booking a holiday, or buying something on-line or by mail-order. There are advantages from doing so, but if the company goes bust you could lose your money. These recent failures are a reminder to pay with a credit card where possible, as this may provide some protection.