SFX is Considering Filing for Bankruptcy
This comes after CEO Robert Sillerman told Forbes there was "a “zero percent chance” the company would go bankrupt.
UPDATE [Friday, January 15]: Just a few days after defaulting on a promissory note caused SFX stocks to plummet even further, the company has announced that they have received $20 million in new financing.
It's been an ugly year for SFX. Reuters last month reported that the EDM conglomerate is carrying $300 million in debt; in September they were sued by investors because of their plummeting stock prices; all of this followed a debacle in which SFX subsidiary Beatport froze payments to their label partners. As THUMP's Michelle Lhooq phrased it in her 2015 article about the increasing size and scale of the EDM industry: "Dance music might not be ready for Wall Street just yet."
But it gets worse: this week SFX released a statement saying they may file for bankruptcy. "In order to facilitate its reorganization, the company may consider utilizing the available protections under the federal bankruptcy laws," they said. The company may not have enough cash on hand to survive 2016, the statement says, and they've hired a turnaround firm to explore their options for restructuring in bankruptcy. So go grab another box of popcorn because it looks like this slow-motion implosion is going to burn bright into the new year.