Contractor Mykiki Pty Ltd, which signed a three-year agreement to provide tents and stage equipment for the festival in January, is listed by the Australian Securities and Investments Commission as being in external administration.

The contract was cancelled after the Community Services Directorate received legal advice from the ACT government solicitor and officers had contact with the Commonwealth Department of Immigration, the Auburn City Council and the Fair Work Ombudsman.

Ms Burch has drawn sustained criticism from the Liberal opposition over her management of the festival's fringe program and the appointment of controversial arts identity Jorian Gardner as creative director.

This year's festival was overshadowed by a February 7 performance that featured a female burlesque dancer dressed as Nazi leader Adolf Hitler, dancing to the song Gangnam Style.

When contacted on Thursday, Mykiki director David Klein said the company was taking legal advice about the contract.

Earlier, sales director Mark Harris said no official investigations were currently under way into the company, which traded as Festival Hire (NSW).

Deputy opposition leader Alistair Coe wrote to Chief Minister Katy Gallagher about the company on July 4, requesting an investigation.

Negotiations between the directorate and the second-placed tender will commence for the final two years of the contract, ahead of the 2015 festival opening on February 13.

Officials decided against reopening a public tender process ahead of the three-day event, citing short time frames and that stall-holder applications were under way.

Ms Burch said her office was only made aware of "serious allegations" against the company in late July.

"While I am deeply disappointed that the directorate did not bring these allegations to my attention sooner, I am glad that this situation has been resolved," she said in a statement.

"Other matters in relation to Mykiki are still under investigation. Many of these relate to the responsibilities of Commonwealth agencies, and I have asked that any information gathered be shared with those agencies, where appropriate.

Ms Burch described the National Multicultural Festival as one of Canberra's "most-loved events".

The fall out from this year's fringe saw Mr Gardner afforded an official citizens' right of reply in the ACT Legislative Assembly in April, in which he said his professional reputation had been adversely affected by criticism from opposition members.

A motion of no confidence in Ms Burch, introduced by the Liberal Party in relation to the burlesque performance and other matters, was defeated on February 25.