It’s official: SFX Entertainment has officially filed for Bankruptcy. However, Beatport has made a statement that should put any immediate fears to rest. From their blog, the Beatport leadership went forth and made a statement (below).
Earlier today, news broke that our parent company SFX Entertainment introduced a financial reorganization plan that includes both new financing and filing for Chapter 11 bankruptcy protection.
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.
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.
In fact, Beatport is expanding. Just last week we launched a version of Beatport customized for the Dutch market, our first foray into operating a fully localized service, and we will be introducing several new features to our News and Video sections over the course of the coming weeks.
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.
Until then… the beat goes on.
What does this mean ultimately for Beatport? Essentially for SFX Entertainment as a whole, the deal that was struck today, will see the company go private and wipe $300 million of debt from its books. The “debt-for-equity swap” will provide $115 million in financing to allow the company to operate as normal during bankruptcy proceedings.
While the company will continue to operate, SFX founder Robert F.X. Sillerman will be replaced by a new CEO and chairman. The company’s value plummeted after Sillerman unsuccessfully tried to buy the company back from its shareholders last year.
Stay tuned for more updates as they come.