Synergy Global Entertainment, the concert promotion company founded by ‘Mayhem Festival‘ co-founder John Reese, has filed for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court in California’s Central District. According to Billboard.com, SGE owes $8.4 million to its creditors with $1 million in assets and $54,000 in the bank. An August 29th, 2019 bankruptcy filing shows the company brought in nearly $17 million gross revenue for the last right months of the year.
SGE had been behind the ‘MUSINK Festival‘, ‘Ozzfest Meets Knotfest‘, Surf City Blitz and ‘Lost Lands‘ festivals, among others. The company however are said to have suffered ‘large losses’ due to apparently sluggish ticket sales on this summer’s ‘Rockstar Disrupt Festival Tour‘ with The Used, Thrice, Sum 41 and more. The cancellation of the planned ‘Mad Decent Block Party Festival‘ also hit the company hard.
Sumerian Records founder Ash Avildsen is listed as SGE‘s sole secured creditor, having loaned Reese $1 million this past June amid the company’s ‘liquidity crisis’. Reese commented on the bankruptcy:
“It is with deep regret and after exhaustive efforts to save the business, SGE is now closed.
After 15 years as a successful festival promoter, SGE was hit by a perfect storm of adverse market conditions and a massive drop in ticket sales and RPT (Revenue Per Ticket) since late April of this year compared to historical ticket sales metrics. As a result of these issues, the negative economic impact for SGE became untenable.
After having creative impact in over 45 Festival Brands and Tours in the company’s history, we most appreciate the years of partnerships with fans, artists, brands and vendors.”
For more on the numbers at play in the filing and a copy of the filing itself, head to Billboard.com.
