SFX Files for Bankruptcy - Future of a Major Festival is Unsure
The US-based live events company that holds ownerships of Tomorrowland, Electric Zoo, TomorrowWorld, Stereosonic and Voodoo Experience, SFX Entertainment, filed for chapter 11 bankruptcy today, Monday February 1, 2016.
The news comes after a roller coaster-of-a-year for the dance music conglomerate, which began with founder Robert F.X. Sillerman failing to buy back the company just two years after it had gone public, causing stock prices plummet by 95 percent.
The deal will take the company private, protect it from creditors by removing $300 million in debt off its balance sheet and provide $115 million in financing from liquidated bondholder debt. The bankruptcy reorganization also sees to it that a new chief executive is found to replace Sillerman, as New York Times reports.
"This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business. Of course this was not where we thought we’d be, but with this restructuring we have the opportunity to achieve all that SFX can and will be," Sillerman said.
The beat goes on, however, for festival brands Tomorrowland, Electric Zoo, Mysteryland and Stereosonic as well as Beatport, the digital music store SFX acquired in 2013.
Here is the statement issued by Beatport shortly after the news broke.
For all of us here at Beatport, it’s just business as usual. That means entire Beatport platform is fully operational without restriction... We look forward to SFX successfully navigating this reorganization, and in the meantime will continue focusing on building the best music experience for the fans, artists, and DJs that make up the electronic music community.
Georgia Unfiltered reached out to Tomorrowland spokesperson Debby Wilmsen about the future of TomorrowWorld, which is still uncertain as opposed to the other festival brands. Read her full statement below.
I'm a storyteller at heart, and music makes my world go round.