Stereosonic owner SFX lays off around 50 staff

Troubled global EDM empireSFX Entertainment, which owns Australia’s Stereosonic Festival, has announced it will reduce its New York staff count by about 50 employees.

The lay-offs come as SFX continues its Chapter 11 bankruptcy restructuring, announced in February, and as its founder Robert FXSillermansteps down from his post as CEO.

Stereosonic promoter Totem OneLove released a statement upon SFX’s bankruptcy announcement to note its owner’s US$490 million in outstanding debt would not affect its local operations. However it did announce yesterday that Stereosonic 2016 would not go ahead.

As per theNew York State Worker Adjustment and Retraining Notification Act, the 50 laid off employees have provided 90-days’ notice and will continue to earn full salary and benefits during their employment.The announcement did not state whether further lay-offs would be made outside of New York.

SFX’s court-supervised restructuring process is being lead by FTI Consulting. FTI’s Mike Katzenstein has stepped into Sillerman’s role of CEO, while Sillerman remains chairman of the board.

In a letter sent to staffbefore departing Sillerman wrote: “That we stumbled along the way can never detract from the energy and hope that brought us all together. As we enter this next phase, despite the place we find ourselves, there is much to be proud of. It remains incumbent on all of us to refocus our energies and find the path to success that is out there.”

SFX is also readying the sale of its three subsidiary companies, the sale of its streaming and download platform Beatport is scheduled for May via an auction, while sale processes for its marketing company Famehouse and ticketing company Flavorousare also in progress.