Sources indicate that EDM conglomerate SFX Entertainment has at last filed for bankruptcy. After a steady decline in stock value since its 2013 IPO which dovetailed into a disastrous 2015, the company is said to have filed a petition with a bankruptcy court under chapter 11 of the United States Bankruptcy Code as the first step towards arriving at a restructuring agreement.
Founded in 2012 by entertainment mogul Robert F.X. Sillerman, SFX Entertainment’s board of executives intended to more or less monopolize the rapidly growing EDM industry by buying up brands such as Disco Donnie Presents, ID&T and Life In Color. Insiders widely chalk up the company’s decline to mismanagement of its numerous assets, and while it’s difficult to quantify how such a turn of events will affect the market, a contraction of sorts is sure to follow.
SFX Entertainment has not issued an official statement with the details of its filing status or restructuring agreement, but check back for further updates as the company’s executives make more information available.