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Tomorrowland Is Safe Despite SFX Bankruptcy

Despite SFX Entertainment declaring bankruptcy earlier this morning, erasing over $300 million in debt in the process, it appears as if Tomorrowland is still safe.

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Despite SFX Entertainment declaring bankruptcy earlier this morning, erasing over $300 million in debt in the process, it appears as if Tomorrowland is still safe.

A spokesperson for the festival released a statement this afternoon, assuring fans that both the Brasil and Belgium editions of the event will still be going on as planned. However, the US version, TomorrowWorld, may not be as lucky.

Check out the full statement below:

Both the festival in Boom (Belgium) and the one in Itu (Sao Paulo, Brazil) will go ahead without any disruption due to the current situation. In light of the present situation, no concrete plans have yet been made for TomorrowWorld 2016.

We are currently exploring all possibilities. Tomorrowland has always worked from a long-term philosophy and in this context, all options are being considered to ensure that, like in Belgium and Brazil, the festival will have a bright future in the United States as well.

In the past few months, it had been clear that SFX, our partner for TomorrowWorld and Tomorrowland Brasil, is experiencing financial difficulties. Last night we received the news that SFX Entertainment, the publicly listed American company founded by Robert F.X. Sillerman, has applied for Chapter 11 bankruptcy protection from creditors. In the coming weeks, SFX will be undergoing a financial and operational reorganization. SFX Entertainment is a stakeholder in numerous events and projects including Awakenings, Sensation, Nature One, Electric Zoo and Rock in Rio.

Since 2013 we have collaborated with SFX for the foreign editions of Tomorrowland held in the USA and Brazil. However, we have noticed that our vision and goals, including a long-term strategy, are different from those of the publicly listed company.

In 2013 the Dutch company ID&T, which then owned 50% of the shares in Tomorrowland, sold its business to the American SFX. Manu & Michiel Beers then decided to buy back the 50% stake that the Dutch ID&T held in Tomorrowland in Belgium, with the result that for the past two years, the Tomorrowland festival has been 100% Belgian, but this has entailed an obligation to collaborate SFX for the foreign editions.

The Belgian festival Tomorrowland remains the passion and life’s work of the driving forces behind its creation, Manu & Michiel Beers and their young, motivated staff in Antwerp and they intend to continue to bring the same level of ambition to the festivals in Belgium and abroad in the coming years.

The Chapter 11 procedure will have no consequences for Tomorrowland in Boom. The festival in Belgium is created, organized and managed for 100 % by the Belgian team. Tomorrowland Brazil will also take place as planned two months from now in Itu (Sao Paulo). Tomorrowland Brazil is being organized in close consultation with the Belgian team by a motivated Brazilian team that is able to work independently of SFX in North America for all aspects of the event.

Obviously, SFX declaring bankruptcy has sent some pretty major shockwaves throughout the EDM industry, but it’s nice to hear that at least some of their events are safe. Given the disaster that was TomorrowWorld 2015, it wouldn’t surprise me if that particular festival was cancelled for this year, but at this point, we’ll just have to wait and see what they decide to do.

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