And the plot thickens at the start the year for SFX Entertainment. According to various reports, the dance music promoter is considering filing for bankruptcy.
This news comes after multiple failed bids and a whirlwind of capital infusions to keep the company afloat by SFX Entertainment CEO Robert Sillerman. In October 2013, SFX had listed its shares on the Nasdaq at a valuation of more than $1 billion. Filing for bankruptcy would cap the company’s collapse.
Time will tell what this will mean for Beatport and all affiliated brands of SFX Entertainment (like TomorrowWorld) but here’s to hoping that everything works out positively for all involved.
Sillerman owns roughly 40 percent of SFX’s outstanding stock, so filing for bankruptcy would be a bitter end to his venture into the world of dance music.
SFX left an official statement regarding the potential bankruptcy:
In connection with its obligations under the Forbearance and Amendment Agreement, the Company has retained financial advisory firm FTI Consulting, Inc. (“FTI”) to serve as the Company’s Chief Restructuring Officer. FTI will assist the Company in evaluating and assessing various restructuring and strategic alternatives, including working with management to analyze and optimize operations and financial performance. There can be no assurance that the Company will be successful in identifying or implementing, on favorable terms or at all, any financial or strategic alternatives, which may include restructuring the Company’s debt, the issuance of additional equity or debt, or the sale of some or all of the Company’s assets. In order to facilitate its reorganization, the Company may consider utilizing the available protections under the federal bankruptcy laws.