After filing Chapter 11 bankruptcy, SFX has made the decision to lay off 50 employees from their New York offices as part of their restructuring efforts. The news comes just days after Robert Sillerman’s official resignation from CEO, and shortly after the announcement of Stereosonic’s cancellation.
The mass layoffs will take effect in July, giving proper notice as required by the New York State Worker Adjustment and Retraining Notification Act’s ’90 day’ clause. Hoping to save $300 million in its supervised restructuring, FTI Consulting has taken leadership over SFX to help navigate a solution to the company’s $490 million debt.
Despite the layoffs, the sale of SFX subsidiaries Beatport, Famehouse, and Flavorus are still continuing as planned. Beatport’s sale is scheduled for May, with bids due by April 28th, and representatives say that the process “is progressing well and we’re very encouraged with the interest received to date. There are multiple parties currently conducting due diligence whom we believe would be excellent partners to Beatport.”
It remains to be seen which companies are interested in acquiring these SFX subsidiaries. Stay tuned as details become available.