The future of one of the world's best-known gay and lesbian celebrations, the Mardi Gras in Sydney, Australia, is under threat, according to its organisers.

They have appointed outside administrators in an attempt to avert financial collapse.

Mardi Gras evolved from a rights riot to a celebration

Last year's carnival lost A$500,000 (US$270,000), largely because of a drop in American visitors after the terrorist attacks on 11th September.

The state government has refused to help, saying taxpayers should not fund poor management.

The Mardi Gras, which began as a gay rights protest 25 years ago, has developed into a street party and cultural festival attracting thousands of visitors.

Backer pulls out

An anonymous "pink knight" who had promised a A$400,000 donation pulled out at the last minute, forcing the festival's organisations to seek voluntary administration, the step before receivership.

"As in the case with normal voluntary administration, the business of the organisation is suspended, so the future of the activities for next year are obviously something that will have to be discussed," Mardi Gras president Julie Regan told reporters.

The administrators, led by Scott Pascoe of the accounting firm Sims Lockwood, said they were confident that they could save the parade.

"A number of potential supporters have already indicated that they may be prepared to support the company, financially, provided there is restructuring," said Mr Pascoe.

It has been estimated that the festival boosts the New South Wales state economy by about A$100m and costs about A$450,000 a year to organise.