Small businesses out hundreds of dollars after GTA event company files for bankruptcy

Small business owners say they’re out hundreds and, in some cases, thousands of dollars after local events company Elevated Society Market canceled their upcoming marketplaces and filed for bankruptcy.

It comes just days after several business owners came forward to share their experiences with the company.

“With the May markets and July market that I had already paid for, I’m out 800 dollars,” said one small business owner, who did not want her name publicly shared.

She said she is one of dozens of vendors who paid fees to secure spots at various pop-up marketplaces organized by Elevated Society Market, only to find out through an automated email from ESM that they were filing for bankruptcy.

CityNews received that same email when we reached out for comment.

“Effective immediately all markets and venues are canceled. We have started the process of [filing] for bankruptcy,” read the email. “All vendors who have paid a vendor fee for future markets will be included in the bankruptcy schedule.”

Business and Law professor at Toronto Metropolitan University, Daniel Tsai tells CityNews what a bankruptcy schedule consists of.

“Secured creditors will get paid first, and then anyone who’s unsecured, which would presumably be all the small business clients that put money to be part of this event planning company, they would share evenly based on pennies on the dollar of whatever is recoverable,” explained Tsai.

He adds it’s very unlikely there will be money leftover and the vendor agreement all of these businesses agreed to, states no refund will be given if a date needs to be changed for any unforeseen circumstances.

“So, a lot of people feel really betrayed and this whole situation has put them in a financial bind or even just trying to cope with the fact they might not see that money ever again,” said the small business vendor.

And it’s not just vendors feeling that financial bind, entertainers like Ian Batterbury are now losing out on their bookings but he is more concerned about how Elevated Society Market has affected the craft market industry in the GTA.

“Because we had a bad apple amongst the bunch [doesn’t mean] they’re all rip off artists,” said Batterbury.

He said he’s worked with many other market companies, and this experience is not the norm.

“The norm is people who are working hard, who go out on Saturdays and Sundays in the heat and wind, and reach out to the public to show something that over Covid they’ve learned to make or craft,” he added.

Elevated Society Market was also responsible for a kids’ market at the Mississauga Convention Centre last winter that was so crowded, emergency services had to shut it down.

“This comes down to… buyer beware and really understanding the history and reputation of the business if you want to do business with them,” said Tsai.

Elevated Society Market did not respond to CityNews’ request for comment, but a spokesperson had previously stated the reason they initially canceled their May markets was due to a personal family emergency.