Bassist and farmer says he is 'gutted' that people are still owed money six months after festival debacle

For Alex James, the bassist from Blur who turned cheesemaker, it was the dream that became a nightmare. For a weekend last September, he gave over his luscious farm in the Cotswolds to a festival celebrating his two great loves: food and music. KT Tunstall and the Feeling played, while chefs such as Hugh Fearnley-Whittingstall and Yotam Ottolenghi gave cookery demonstrations.

More than 7,000 people attended each day, including the cream of the so-called Chipping Norton set. Jeremy Clarkson rolled up in his Range Rover, disgraced News International supremo Rebekah Brooks was there and even David Cameron, the prime minister, attended, baby Florence strapped to his chest in a harness as he browsed the street-food stalls.

Alex James Presents Harvest was deemed a success – until a couple of days later, when the company behind the festival, Big Wheel Promotions, announced that it was in difficulties, with creditors later reported to be owed close to £1m.

Since then, save for a terse statement, James has remained silent while abuse has been heaped upon him, both in the press and social media. Finally, this weekend he spoke about the financial collapse, which not only cost him money but left friends in both the music and food businesses, neighbours in the Cotswolds and even a local primary school out of pocket. "The fact that people didn't get paid really, really upset me," he said. "But I had to follow legal procedures and unfortunately that meant not talking about it."

The festival on James's farm was a sister event to Harvest at Jimmy's, a similar food and music festival that had been run for two years by Big Wheel on the Suffolk farm of broadcaster and farmer Jimmy Doherty. Many of those involved in that festival also remain unpaid.

"I had looked at the event at Jimmy's and they seemed to have a good business," said James. "Although I was simply giving my land for the festival, my major concern was making sure that, as I was seen as the host, everybody involved was paid on time."

Ticket sales were strong and the response positive. "It was the best party I'd ever been to." Within a week, however, the company announced that it was in trouble. "They told me sponsors hadn't paid up and that the losses were substantial. I was shocked."

While some staff and performers were paid in advance, many others were left with huge unpaid bills. Among them was Kingham primary school, which received only half of the £14,000 it had been promised for arranging a festival of local bands. The money was to go towards the salary of a music teacher at the school. After the collapse, Ed Read, the headteacher, said the school might not be able to fill that staff post.

However, in December, a concert was staged in Chipping Norton to settle the debt. "I pledged to match the funds raised from my own pocket," James says, '"and we managed to return most of the money. I was very happy to do that."

Others have not been so fortunate. Ottolenghi received just a few hundred pounds of the £2,000 he was owed. "I was surprised because it was a well-run event," he said. "The money was not such a big deal for me, but I was concerned about the many other people who worked on it and were relying on full payment." The catering company Blanch & Shock was £8,000 out of pocket.

"In business terms it's the worst thing that's ever happened to us," said the firm's Mike Knowlden. "Although I did think Alex could have been more supportive in his statements, I understood there were legal constraints. My anger is mostly directed at Big Wheel."

James acknowledges how furious many of those involved have been. Although he did receive part-payment upfront, it did not, he says, compensate for the work he put into the festival. '"It wasn't about the money I lost. It's just a mess. It was easily the worst business deal I've ever done. I'm gutted that some people didn't get paid."

A spokesman for Big Wheel said that, by going into a company voluntary arrangement, it was attempting to make sure creditors received at least 20% of the money they were owed.

"Big Wheel Promotions has been responsible in trying to ensure all the people involved are compensated as much as we can for all their hard work. We are trying to honour our commitments to both them and the local community. We have not just walked away."

 Jay Rayner The Observer, Sunday 4 March 2012