Lounge Event Kft. expelled from Hungarian event organizers association

The Association of Hungarian Event Organizers and Service Providers (MaReSz) has expelled Lounge Event Kft. from its membership. The decision follows significant unpaid debts owed to subcontractors.

As of July, 27 event industry businesses had reported net subcontractor claims totaling approximately 3.47 billion forints related to Lounge Event's supply chains. The scope of these claims and the number of affected companies have since expanded. MaReSz stated that despite a formal written request for settlement issued on August 11, the company failed to resolve the outstanding debts or fulfill previous payment promises. Furthermore, the association noted that Lounge Event began disputing services that had been previously accepted or acknowledged.

The association concluded that the company's conduct violated its statutes and ethical code, specifically regarding good faith, business integrity, cooperation, and the full fulfillment of obligations. MaReSz also noted that failing to pay subcontractors can create an unfair competitive advantage. Following the expulsion, Lounge Event Kft. is prohibited from claiming membership or using the association's name or logo.