Tuesday, May 11, 2021
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SFX May Be Headed for Bankruptcy Says Financial Blog

SFX
Over the past several months there has been a steady stream of distressing news surrounding the financial woes of EDM juggernaut SFX. Despite the continuous bad news, there has always been a thread of mismanagement that could be fixed by new leadership. Everyone has maintained that SFX will bounce back, but financial blog Seeking Alpha is singing a different tune.

The blog reports that their forecast is for SFXE stock to hit $0 and they believe that the company is hurtling towards bankruptcy. As evidence of this, they discuss their belief that CEO Robert Sillerman‘s bid to take the company private was never truly serious, as is evidenced now by him walking away. Most important, the company’s problems surround the fact that it continues to bleed cash. Perhaps the most surprising aspect is to see that according to SFX financials, ticket sales revenue is actually down despite them having more festivals. This may be serious evidence of that often-rumored festival bubble finally popping. The last piece of evidence concerns actual SFX employees reports from Glassdoor.com which are exceedingly alarmist and negative.┬áThis paints a much more grim picture than we have seen for SFX in the past, so it might not be time to buy up stock after all. You can read the original article here.

Source: Seeking Alpha

Scott Lombardo
| South Florida Construction & Business Litigation Attorney | JD/MBA | PIKE | ? | Trancefamily | Technoteam |
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