Things have been going down-hill for SFX Entertinment, the owner of companies like ID&T, Q-dance, b2s, Beatport and Paylogic, for quite some time now. Today the organization finally made the decision several media had already been expecting.
SFX Entertainment has filed bankruptcy today, meaning as of today the organization will no longer exist on paper. This way they are trying to restructure their $ 300 million dollar debt. An unknown source has offered a $ 115 million injection in order for SFX to reorganize.
Ever since SFX went public things haven’t been looking too bright for its owner Robert Sillerman .Sillerman used this money to go shopping. He bought several companies like ID&T, b2s and Air Events. These companies are responsible for a large part of the world’s Electronic Dance Music events. But Sillerman didn’t stop there. He continued shopping abroad and has also bought companies like i-Motion and Stereosonic. While he expected the stock’s value to increase, it has done nothing but drop tremendously. The stocks IPO started at $ 13,- and dropped down to $ 7,09 on September the 1st last year. A few days ago the stocks were only worth a few cents.
Sillerman made the following statement regarding their bankruptcy and $ 115 million injection:
“This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of the over 600 people who make up SFX. Of course this was not where we thought we’d be, but with this restructuring we have the opportunity to achieve all that SFX can and will be. I’m looking forward to continuing to be part of the new SFX as Chairman. We will immediately commence a search for a new CEO to lead us as we continue to set the trend in the exploding culture that is electronic music.”
Luckily the company’s international operating subsidiaries are not included and will not be impacted by the filing. Moreover, the company will continue to prepare for, plan and produce all of its festivals and events around the world and in the United States without interruption. That means millions of festival fans can expect another season filled with spectacular experiences without any concern.
Source: Econotimes
