Christchurch City Council has decided to assume direct control of its events company, Vbase.
The decision comes after it unveiled proposals to pump $54 million into the company.
Vbase has staged 1000 concerts, conferences and other events over the past six years in the Christchurch Town Hall, the Convention Centre, the CBS Canterbury Arena and AMI Stadium.
But the chief executive of Vbase, Bryan Pearson, says three of those four centres suffered serious damage in February's earthquake and company activity has dwindled.
Even before the quake, Vbase was struggling with debts arising from dwindling numbers at rugby games and a change in tax laws.
Mr Pearson says there will be a substantial loss of jobs among the company's 250 full-time-equivalent positions. The exact number is expected to be announced on Monday.