Beatport owners SFX file for Bankruptcy
SFX Entertainment who are the Beatport owners have filed for bankruptcy. In the meantime Beatport wants to assure everyone that all will be business as usual, calling the recent state of events a reorganisation.
According to Beatport’s official statement…
“For all of us here at Beatport, it’s just business as usual. That means entire Beatport platform is fully operational without restriction. The store remains open. The streaming service continues uninterrupted. New releases are being added every day. New videos are being scheduled and filmed. Payments to labels and suppliers are ongoing in their usual manner. 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.”
SFX Entertainment became the Beatport owners when it purchased the company for $50 million back in 2013.
And last year the Beatport owners had to freeze all royalty payments due to the financial trouble the holding company was facing. The CEO of SFX Entertainment, Robert Sillerman has also put plans into motion in order to take the company private.
The bankruptcy process will help the company clear itself of $300 million debt. During this process the CEO will step down and take on the position of Chairman. SFX Entertainment will now become a private company and will receive $115 million in financing.
Last year in September, a class action lawsuit was filed against SFX Entertainment due to providing “false and misleading information” to investors.
Recently the company suffered cancelled deals with Spotify and TMWRK.
It is unknown how much of SFX Entertainment’s debt was in fact owed to label partners, but Beatport at this point wants everyone to know that they are secure. Not so long ago they were forced to make a statement regarding delayed payments to labels by the Beatport owners, SFX.
It’s interesting to see just how far reaching the corporate takeover has carried itself into the dance music world and one can only wonder whether it’s been a good thing or not.
Here’s the list of SFX Entertainment’s subsidiaries and the brands that they own.
- ID&T
- Tomorrowland
- TomorrowWorld
- Sensation
- Mysteryland
- Mysteryland USA
- Awakenings
- BEATPORT
- LIFE IN COLOR
- IMOTION
- Nature One
- Ruhr-In-Love
- Mayday Festival
- DDP
- MMG
- LIV
- LIV at Sun Life Stadium
- Story
- MADE EVENT
- Electric Zoo
- TOTEM
- Stereosonic
- Q-DANCE
- Qlimax
- qult
- X-QLUSIVE
- 1
- Q-BASE
- QAPITAL
- FREAQSHOW
- B2S
- Decibel Outdoor Festival
- Hard Bass
- Thrillogy
- Pussy Lounge
- Knock Out!
- Loudness
- Hardcore4life
- Euphoria
- back2school
- Project Hardcore #PH
- REACT
- Summer Set
- Spring Awakening
- ClubTix
- ROCK IN RIO
