SFX Considers Filing For Bankruptcy
Just yesterday we published our thoughts on what the biggest stories of 2016 were gonna be, and the end of dance music company SFX was one of them. Not even a day later, the final curtain for the event behemoth appears to come a lot sooner than expected. Because in a new report, SFX has now revealed that it may actually be filing for bankruptcy.
See also: This is what’s happening in Dance Music in the year 2016
It is not a secret that 2015 had been an extremely bad year for SFX, the mother company of dance music’s commercial pillars such as Beatport and React. During 2013 and 2014, SFX was still at the top of their game, buying up myriad esteemed promoters, most notably the Dutch ID&T for a staggering $130 million, raking in such festivals as Sensation, Awakenings, Mysteryland, Loveland, Tomorrowland and Tomorrowworld. Bad publicity soon followed the next year, as the NASDAQ traded SFX announced Cracks in the facade began to surface last year, however, when the publicly-traded company announced it would be sold back to founding CEO Robert Sillerman. The reason for it being a terrible year for the company, which showed unexpectedly low returns, and the share price hitting low after low. The current stock price of SFX is $0,22. Its starting price back in October 2013 was $11,90.
The story developed into Beatport briefly freezing payments to record labels using the service. With news that the company failed to be bought into private hands, things turned to worse. Sillerman withdrew from his plan to buy the company in the first place.
SFX has now hired a consulting firm to look into the possibilities in dealing with its financial problems. The latest reports reveal that the company is considering filing for bankruptcy, as it may not have enough money on hand to survive through 2016. (SFX has $59.8 million in cash compared to $312.6 million in debt, according to NASDAQ).
To be continued..