Update: 15.07 GMT. Beatport has released a statement saying it’s “business as usual” for the online dance music retailer despite its parent company’s financial woes.
“For all of us here at Beatport, it’s just business as usual,” the statement reads. “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 – which was the first EDM conglomerate to float on the NASDAQ in October 2013 – has filed for chapter 11 bankruptcy this morning.
The group – which owns Tomorrowland, Electric Zoo, Stereosonic, Voodoo Experience, and Beatport amongst many others – has been facing financial trouble ever since its initial public offering in 2013.
Founded by Robert F.X Sillerman in 1990, the company eventually ended up as Live Nation, when Sillerman sold it to Clear Channel Communications, who then merged with Ticketmaster to form Live Nation, the largest concert promoter in the world.
Since then, Sillerman decided to bring back the SFX name, and began buying up a host of different EDM-focussed entities off the back of EDM’s meteoric rise in North America.
For a variety of reasons, SFX never managed to combine all of its loosely connected enterprises into one profit making business, hence why it filed bankruptcy.
As with US bankruptcy law, the company will see $300million of debts wiped from its balance sheet and will continue to trade as normal during the case. The deal will see a new chief executive takeover from the current CEO and Chairman, Robert F.X. Sillerman.