The company behind the Fortnite Live event that was described as a shambles has gone into liquidation, hours after the makers of the game announced they had taken legal action.

Hundreds of people demanded refunds after they spent hours waiting to enter Norfolk showground on Saturday, with attendees complaining of underwhelming attractions and high ticket prices.

There was only space for four children to practise archery simultaneously, and one climbing-wall tower, which could accommodate three climbers, for the estimated 2,800 people at the event.

In an email sent “with heavy hearts” to ticket holders, Exciting Events said it would cease all activities immediately.

“These proceedings by Epic Games has had a catastrophic impact on the company’s ability to trade, which has forced Exciting Events Limited to cease all trading activities immediately and the director of Exciting Events will now seek to limit the losses to third parties as far as possible,” Shaun Lord, the company’s director, said.

Admitting there were “longer than expected” entrance and wristband queues, which caused “impatience and frustration for some parents”, Lord said the “vast majority of children loved Fortnite Live Norwich”.

Despite the negative publicity, he said, Exciting Events, formerly known as Fairytale Wedding Company, had remained committed to hosting two Fortnite Live events in the future, until the legal action was taken.

“The company’s assets will be turned into cash and the funds distributed among the creditors, including the HMRC in the first instance,” the email read. “Where any funds are left over, the distribution will be equally divided amongst other creditors.

“All Fortnite Live Spalding and Newark ticket holders will automatically be included on the creditor list. There will be no exceptions to this rule.

“Due to the complexity of the process, it’s not possible to provide a timescale for further communication at this time, nor is it possible to reply to every email, text, phone call or social media message received at present … however please be assured that the director will complete the process as soon as possible.”

Lord stressed that Fortnite Live was an unofficial event created by Fortnite enthusiasts, and was designed around children playing the game.

A spokesperson for Epic Games, the creators of Fortnite, said on Tuesday: “The quality of our player experience is incredibly important to us, whether it’s inside the game or at official public events like last year’s Fortnite Pro-Am. Epic Games was not in any way associated with the event that took place in Norwich and we’ve issued a claim against the organisers in the high court of London.”