Financial troubles can pop up in just about any industry. It may seem like some industries, such as the entertainment business, would be permanently protected from financial woes, but that is simply not the case. No matter how well a business is doing or how well the industry is doing, there are many unique factors that may force a business to file for Chapter 11 bankruptcy protection.
Recently a New York-based entertainment company filed for Chapter 11 bankruptcy protection. SFX Entertainment Inc. is known for producing live electronic music concerts in the United States and all around the world. They are the company behind many popular events such as the Electric Zoo festival that is held in New York.
The company is owned by the same man who founded SFX Broadcasting in the 1970s. He later sold that company and began an event-promotion company called SFX Entertainment. A few years after, he sold that company to Clear Channel Communications Inc., but restarted the live-event business in 2011 in order to concentrate on festivals.
The company, which went public in 2013, plans to go private as part of the bankruptcy plan. According to a news report, they hope to wipe away $300 million in debt. The company will continue to operate with the use of$115 million in bankruptcy financing.
The bankruptcy process may seem intimidating but it can be the right business decision that helps you save your business in the long run. With the right planning and implementation, you may be able to keep your business afloat and eventually make it that much stronger.