Small businesses owed millions by large international production companies

The Turku-based event production company Band Age is owed over €15,000 from the international company Turbine Studios, Band Age CEO and main owner Mia Ljungqvist says. Even the debt collection agency is pessimistic about the receivables.

“This is so unfair. This year, we’ve had to send our receivables to debt collection agencies regarding a few film productions. It seems the film industry has had some problems,” Ljungqvist says.

Turbine Studios rented drivers from Band Age through the Finnish company Film Service Oy.

“This won’t close us down, but it is a stone in our shoe. All the money owed to Band Age is intended for employees’ salaries. In this case, I’m taking the hit myself as the business owner.”

The drivers rented by Band Age transported goods from Lapland to the south of Finland after filming using lorries the production company had rented itself, Ljungqvist says.

The crew of the Constellation series filmed their large international production on locations such as Inari, leaving behind over one million euros in unpaid invoices. For example, the catering company Aurora Estate is owed tens of thousands of euros.

Band Age arranges event production, trade fairs, concerts, festivals and film production. It is one of around twenty Finnish companies which Turbine Studios owe. The series has been commissioned by streaming service Apple TV+.

Salminen of SY: “incomprehensible and unacceptable”

Petri Salminen, the chair of Suomen Yrittäjät, the Finnish SME association, wrote on X (formerly Twitter) that the film crew’s failure to pay their invoices was “disgraceful”.

“Everyone agrees that the businesses’ demands are justified, but nevertheless these business owners, who are recovering from the pandemic, are not getting their money. This is incomprehensible and unacceptable,” Salminen wrote.

Even debt collection agency pessimistic

Ljungqvist says that Band Age has faced large losses in the past when companies have gone bankrupt.

“We have unfortunately had to sometimes resort to debt collection agencies over the years to recover our money, but during the past five years things have returned to normal. Of course, Covid screwed everything up for us, as it forced us into a total lockdown.”

Band Age’s biggest client is the large international company Creative Technology Finland.

Turbine Studios filmed the TV series in Finland over five weeks in January and February. It was the most expensive TV production ever filmed in Finland. The Helsingin Sanomat newspaper first reported the news.

The invoices’ due date was in the middle of February.

“Film Service sent their most recent ‘we’re investigating matters with the foreign production company’ excuses by email in June, when they promised to pay their debts. Now they’ve gone quiet, and we’ve resorted to debt collection.”

Film Service Oy is a Finnish subcontractor which has been providing services for production companies in Finland.

“The debt collection firm has said not to hold our breath, because this could become a long project. Apparently, the production went way over budget and Film Service hasn’t got any additional budget. They’ve just ordered more,” Ljungqvist says.

After the article in HS, some of the companies affected published a joint letter about their receivables. In addition to Aurora Estate Oy, it has been signed by Agency Icon Oy, Renttujuu, Hygikyyti, the Kultahippu hotel, Joonas Tammi, PaPana, Visit Inari Oy, Location House Oy, Band Age Oy, Sähkö-Pusa Oy, Eleinor Oy and Marrent Oy. Four companies did not wish to be named publicly.

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