(Hypebot) – In a new report, SFX has revealed that it may file for bankruptcy.
It`s the latest bit of bad news in what has been an extraordinarily terrible year for the Robert F. X. Sillerman-led enterprise (which owns Beatport and React, among other electronic music properties). As Forbes notes, the company was valued at around $1 billion in October 2013. Now it can barely stay afloat.
SFX spent much of 2014 buying up as many companies as they could. Cracks in the façade began to surface last year, however, when the publicly-traded company announced it would be sold back to its founder, a bout of damage control following disappointing performance.
Following that, Beatport briefly froze payments to record labels using the service, which was another sign of money troubles. Then, SFX failed to go private and, with the final nail in the coffin, Sillerman withdrew from his plan to buy the company in the first place. And all that came in the face of a class action lawsuit on behalf of dissatisfied investors.
As the debt continues to rack up—and the company begins to default on some loans—SFX has hired a consulting firm to help it deal with its financial woes. The latest reports reveal that the company is considering filing for bankruptcy, as it may not have enough money on hand to survive through 2016. (SFX has $59.8 million in cash compared to $312.6 million in debt, according to the NASDAQ.)
–According to RA News
