Beatport has moved to reassure its partners that it’s “business as usual” at the service – including royalty payments to labels – despite parent SFX filing for Chapter 11 bankruptcy earlier today.
SFX has filed for bankruptcy as part of a refinancing process which will help wipe $300m in debt off the company’s balance sheet and see it go private.
Boss Robert Sillerman is stepping down as CEO as part of the bankruptcy process, but will remain as Chairman.
SFX says it has reached an agreement with an ‘ad hoc group of bondholders’ to significantly restructure its outstanding debt. This includes the conversion of debt owed to these bondholders into equity as part of the new privately-owned SFX.
These ‘ad hoc bondholders’ have additionally agreed to provide SFX up to $115m in DIP (debtor-in-possession) financing, allowing the firm to operate as normally as possible over the next few months.
How much of SFX’s debt was owed to label partners of the organisation before its bankruptcy is currently unknown – but Beatport is staying positive.
“Payments to labels and suppliers are ongoing in their usual manner.”
Greg Consiglio, beatport
Beatport President & CEO Greg Consiglio said: “All Beatport users, customers, and partners should rest assured knowing that this action will have no impact on our ability to continue offering the most complete electronic music experience available. Around here, it’s business as usual.”
He continued: “That means the 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.”
Consiglio added: “For 12 years, Beatport has served all facets of the electronic music community–DJs, artists, labels, and fans alike–and that’s not going to change anytime soon. From the beginning, we’ve committed ourselves to the long haul, ignoring the mainstream trends, fads, or bubbles that only serve to distract and divide.
“We remain focused on the music and will continue to reinvest in the creative community every step of the way. We have a lot of exciting plans for the year ahead, and can’t wait to show everyone what’s next.”
Sadly, Beatport isn’t the only company which falls under the SFX banner, and today’s Chapter 11 bankruptcy certainly won’t allow all of them to pay off their debts in full.
Here’s a list of SFX’s subsidiaries – and the brands that they own.
