The unthinkable may be on the verge of happening. Dance music’s juggernaut conglomerate, SFX, is rapidly running out of options and is reportedly considering bankruptcy. It has been a a shocking downfall that has been painful to watch, with numerous failed rescue attempts and glimmers of hope unable to fix its financial woes. Most recently, their attempts to lure an exec to become the new CEO failed because the company could not meet his salary requirements and then deals with Spotify and Diplo’s management group were terminated. Â Now, SFX has hired FTI Consulting to put all options on the table including bankruptcy, unless somebody comes to the rescue (Live Nation?).
No longer full of boasting, SFX responds to the possibility of bankruptcy in the most formal way possible. However, Sillerman maintained that SFX had a “zero percent chance” of going into bankruptcy even while withdrawing his buyout bid. As fans continue to speculate about the future of TomorrowWorld, we hope somebody will come to the rescue for some of the company’s assets such as ID&T, Beatport and others. It’s worth mentioning that bankruptcy is not necessarily the end of SFX, but a means by which the conglomerate can get out from under the crushing debt it has accumulated during its acquisition spree. Many companies rise out of bankruptcy protection and go on to perform well again. Analysts maintain that SFX holds valuable properties and that its fall is mostly due to mismanagement. Don’t count them out just yet, and stay tuned for more news as we get it.
Source: Forbes
