Bad news for electronic music scene, SFX Entertainment confirmed rumors about their financial situation starting a chapter 11 bankruptcy process.
Despite the apparent success, 2015 was not easy for the business conglomerate that includes ownership of famous festivals and electronic music related companies.
In this article you can find the main questions and answers (without going into boring technical details) about the bankruptcy declaration and its possible consequences:
1. What are the festivals and companies owned by SFX Entertainment?
Well, it’s a huge list of big names in the electronic music scene:
- Tomorrowland Brasil y Europa (parcialmente, leer más adelante)
- Electric Zoo
- Voodoo Experience
- Life in Color
- Sensation (parcialmente)
- Rock in Rio (50%)
- Tiendas digitales Beatport
- Paylogic and many more…
2. Tomorrowland events scheduled for 2016 will be canceled?
Nope… According to statements by Debby Wilmsen, authoritative voice of SFX, festivals in Belgium and Brazil were held as scheduled. This is because ID&T, the European company that originally created the concept of Tomorrowland bought again the SFX part sold in 2013.
3. ¿The Tomorrowland concept can disappear?
No. Tomorrowland has shown the potential from its first editions and even in the worst possible scenario: the complete liquidation of SFX Entertainment, this concept can be purchased by other companies eager to exploit this brand, which has brought together more than 100,000 attendees in each of its editions.
4. What is bankruptcy?
First and foremost bankruptcy is not equal to liquidation, SFX will continue operating under new parameters. It’s a complex process, basically the company will enter in a period of financial reorganization, under new CEO direction and released from a debt of more than $300 million.
5. ¿What is the future of TomorrowWorld?
Time of bad news, so far the future of the American edition of Tomorrowland is uncertain. After the disastrous 2015 edition plus financial problems this year TomorrowWorld might disappear or at least not perform this year. This was explained above, TomorrowWorld is wholly owned by SFX, while Tomorrowland belongs (internally) to ID&T, the original concept creators.
6. ¿And Beatport?
According to statements by Debby Wilmsen, SFX authorized spokesman, Beatport is a separate, fully successful company and will continue to operate normally.
The story continues in the coming days we will see announcements about possible changes in Tomorrowland and definite news about TomorrowWorld 2016.