It\’s been a rough year for SFX Entertainment and just when things are looking up, they fall back down. What was once a company worth $1 billion is now $300 million in debt with a market capitalization of only $30 million.
The EDM festival organizer which is responsible for festivals like Electric Zoo and Tomorrowland is currently looking into a debt restructuring and has asked investment bank Moelis & Co. for assistance, according to Reuters. A spokesperson for SFX CEO Robert F.X. Sillerman confirmed the finding to Reuters when asked for comment saying, \”It is correct that the company hired Moelis to examine broadly its position. That principally includes sales of non-strategic assets as well as examining the capital structure of the company,\”
It\’s no surprise that SFX is seeking outside help. Just in September, Sillerman agreed to invest $30 million into the company but the company has still not seen the full amount. He has also attempted to privatize the company twice and failed to find the resources to do so. In their most recent quarter results, the company had a loss of $54.5 million at the end of September.
As for the causes of this downward spiral, it\’s hard to say. Sillerman has blamed the third quarter losses on the cancellation of several festival days and the expected sales and revenue that was not attained.
Photo via Decoded Magazine.