SFX takes Beatport off the market
Despite its latest efforts to escape bankruptcy, shamed US live events conglomerate SFX Entertainment has withdrawn the sale of Beatport, its global electronic music platform.
According to Hypebot, the decision was passed by the US Bankruptcy Court in Delaware yesterday, following the company’s choice to deal directly with creditors rather than proceeding with their bankruptcy reorganisation plan.
The official pre-Chapter 11 Restructuring Agreement was terminated last month and negotiations with bondholders and creditors have since begun.
SFX Entertainment have cut staff, cancelled festivals, and recently offloaded digital marketing company Fame House in which they acquired in 2013, as well as ticketing firm Flavorus to Universal Music Group in a bid to offset their hefty debts.
In light of these recent sales, it is unclear why the Beatport offer was withdrawn. Initial reports suggest that no credible offers were received, despite gaining interest from 24 potential buyers earlier this year, with 18 performing due diligence. The money from the sale of Beatport would have gone a significant way in diminishing the company’s outstanding liabilities.
After acquiring Beatport in 2013 for an estimated price of US$50 million (AU$69.1 million), SFX Entertainment filed for chapter 11 bankruptcy on February 1 2016 in the wake of its US$490.2 million (AU$677.9 million) debts.
Beatport have since restructured their business model, electing to concentrate on core music sales instead of streaming, live and original content operations. The company will continue to operate under the SFX Entertainment banner.