A "clerical error" that saw the company holding the lease of a historic Tasmanian property become deregistered is being blamed for the last-minute cancellation of a popular event at the site.
Entally House at Hadspen in the state's north was built in 1819, with the historic site home to Australia's oldest conservatory.
The property was to host its biannual event Gardenfest — which attracts thousands of people — last weekend, but it was abruptly cancelled on Friday afternoon due to what organisers said were "unforeseen circumstances".
The Tasmanian government has owned the estate since 1948, and has leased it to a company owned by Rob Sherrard since 2015.
Mr Sherrard, along with Brett Godfrey — who is also listed as a lessee on the official Entally Estate website, conceptualised what became the Virgin Australia airline and have also invested in several other Tasmanian ventures, including Quamby Estate, the Low Head Pilot Station and the Tasmanian Walking Company.
A Tasmanian Parks and Wildlife Service (PWS) spokesperson said the company — Entally Lodge Pty Ltd — cancelled Gardenfest "due to matters relating to its own administrative arrangements".
The ABC understands the issue relates to the company being deregistered by the Australian Securities and Investments Commission (ASIC) in November, before it had its Australian Business Number cancelled in December.
Both Mr Sherrard and Mr Godfrey were contacted.
The company's general operations manager Shane Smith said Gardenfest was cancelled due to an "unfortunate clerical error" that prevented it from correctly insuring the event.
"It had come to our attention that we weren't going to be able to be compliant with our insurance, there was a clerical error that occurred and [it's] just unfortunate that we couldn't proceed," he said.
"We tried until the 11th hour to be able to push through with the event, but we just couldn't get across the line."
When asked whether Gardenfest was allowed to take place given the business had been deregistered and the ABN cancelled, Mr Smith said: "Well, we wouldn't have been, I'd assume."
He said the clerical error had since been rectified and that Entally was planning to hold another event in November.
He did not respond when asked if the estate would be open to the public on Wednesday, but the ABC has confirmed the property is closed with no known reopening date.
Under Federal legislation, ASIC takes control of a deregistered company's property.
Profits 'obliterated' for stallholders
The Devil's Own Ice Creamery owner Martin Hamilton was one of dozens of stallholders put out by the sudden cancellation of Gardenfest.
He said he only found out the afternoon before through another stallholder.
Mr Hamilton said he contacted Entally to find out why and was told it was due to a leasing issue with the PWS — which PWS said was not the case.
The ABC spoke to multiple stallholders who said Entally gave them the same reason, but Entally has denied this occurred.
Mr Hamilton had anticipated a $5,000 profit from the weekend.
"That's now just obliterated," he said.
"It's very, very frustrating."
Factoring in hundreds of dollars in unmovable stock and paying staff he did not require to work in his cafe to spare them lost wages, Mr Hamilton estimated the financial hit was closer to $7,000.
"When you couple this with the rise in the cost of living [and] inflation … to suffer a financial loss like this will be devastating for us as a business," he said.
"It really makes me second guess whether I want to continue to support the Gardenfest if there's always going to be that spectre over my head.
"What happens if we go through all of this and book our calendar out and then get another phone call of the 11th hour to say, 'sorry, guys, you're not going to be able to come anymore?'"
Entally is normally open to the public every week between Wednesday and Saturday, with the site also hosting weddings.
The site was previously leased to the National Trust and timber company Gunns.
Mr Sherrard and Mr Godfrey also poured millions of dollars into expanding and renovating the former Rutherglen Holiday Village to create Entally Lodge, which is across the road from Entally Estate.
In 2022, the lodge tourism venture, which featured a restaurant, bar and accommodation, permanently closed less than seven years after it opened.
At the time of its opening, then-Tasmanian premier Will Hodgman described it as "huge vote of confidence" in the state's tourism future.
