Written by Phil Morse — SFX Entertainment, the owner of Beatport and also the company behind many of today's biggest festivals (including Tomorrowland and Electric Zoo), has filed for Chapter 11 Bankruptcy in the US today.
We're guessing this will signal the last of SFX CEO Robert Sillerman's involvement with Beatport, which was only purchased two years ago by SFX Entertainment.
As is often the case when companies file for bankruptcy, though, this is unlikely to be the end of the story. We actually think this will be good news for Beatport, as it will allow the company to be taken private, and relieve it from its exposure to the reported $300m debt that its parent company has accrued (source: Wall Street Journal).
The company itself also appears to think so, issuing the following bullish statement:
"For all of us here, it’s just business as usual. That means entire Beatport platform is fully operational without restriction. The store remains open. The streaming service continues uninterrupted. New releases are being added every day. New videos are being scheduled and filmed. Payments to labels and suppliers are ongoing in their usual manner.
"We look forward to SFX successfully navigating this reorganisation, and in the meantime will continue focusing on building the best music experience for the fans, artists, and DJs that make up the electronic music community."
Let's hope they manage this, for the sake all those DJs heavily invested in Beatport as their go-to source for digital music.
Find out more on Beatport's blog here.
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