SFX Entertainment, a major EDM promoter company, has reportedly filed for chapter 11 bankruptcy. Despite receiving $20 million in funding earlier this year, major organizational problems have caused SFX to restructure its entire finances in hopes of staying alive.
SFX is responsible for a number of widespread dance festivals, including Electric Zoo, Tomorrowland, a 50% share in Rock in Rio and dozens of other events. They also are responsible for Beatport, a streaming service that focuses on electronic music, DJs, and remixes. The company had been trying to go private for a majority of 2015, and filing for bankruptcy comes as a last-ditch effort to save the company entirely.
SFX will enter into a Restructuring Support Agreement, where a majority of the debt will be erased and the remainder will transfer into employee equity. CEO Ben Sillerman, who has been a high-level executive of the music industry for several years, will be forced to step down because of the agreement.
In a statement, Sillerman said, “This expression of confidence from our lenders is testimonial to the vibrancy and potential of our business, and the dedication and professionalism of the over 600 people who make up SFX. 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.”
For now, all SFX events will be held as scheduled. We’ll be sure to keep you posted on this dramatic turn of events.