After over a year of maneuvering and attempting to get back to the solid financial footing it once had, SFX Entertainment has officially filed for bankruptcy in the United States.
The company is looking to erase $300 million in debt and to be taken private. In order to be able to continue to operate, SFX will reportedly get $115 million in a debt-for-equity trade. That figure might be enough to allow things to continue as normal for the company, which has a busy festival season ahead. The news doesn’t come as a complete shock, as just a few weeks ago, SFX defaulted on a loan and missed a payment of a few million dollars after a very rocky year.
Since February of 2015, CEO and founder Robert Sillerman has been attempting to buy the company back and take it private, as it went public on the NASDAQ in late 2013. He announced his plans to sell the second forming of SFX, but his attempts were unsuccessful. While the stock prices dipped dramatically—share prices have been below a $1 for months and dropped more than 50% on the news today—Sillerman’s three tries to make the company private again were all unsuccessful, and very public.
“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. I’m looking forward to continuing to be part of the new SFX as Chairman. We will immediately commence a search for a new CEO to lead us as we continue to set the trend in the exploding culture that is electronic music,” Sillerman said.
SFX’s fall from grace is a sad and rather quick story. After successfully selling the first iteration of SFX to Clear Channel for billions back in 2000, Sillerman, often thought of as one of the most important figures in the music industry, decided to make a second go for it.