Photo by Robin Marchant
The corporate behemoth of electronic dance music, SFX, has amassed a rather large amount of debt. According to Nasdaq’s latest update, $312.6 million, to be exact. In fact, SFX has just received a waiver through January 28th for defaults on $30 million in debt. As a result of the waiver, SFX CEO Robert Sillerman has hired FTI Consulting Inc. to examine restructuring options that would become available after filing for bankruptcy.
In order to facilitate its reorganization, the company may consider utilizing the available protections under the federal bankruptcy laws.
There’s no other way to say it; 2015 has been a tough year for SFX. The company had to cancel the inaugural One Tribe Festival due to financial concerns, received immense backlash after the TomorrowWorld fiasco, and has faced allegations of violating federal security laws in their failed attempt to re-privatize.
Even the company’s partners have been jumping ship: Spotify backed out of their deal with Beatport, and TMWRK, the management company behind Jack Ü and loads of other A-listers, has bailed out of their SFX acquisition. While the corporation has certainly done some good for the industry, its questionable ethics have caused more than enough headaches and they are now receiving their just desserts.
