After weeks of industry speculation regarding the future of Metropolitan Talent and rumored cash flow problems, senior management at the company - co-CEO's John Scher and Al Cafaro, and CFO Errol Antzis - now say they will lay off and furlough "a number" of staff members, but the company will stay in business.
The move comes as Metropolitan says it was on the verge of announcing an "exciting new strategic reorganization when a major investor withdrew due to the economy and the investor's own liquidity issues," according to a prepared statement.
Metropolitan's three divisions: concert production, artist management and Hybrid Recordings, will continue operations. The company's concert division, Metropolitan Talent Presents, under the direction of senior producer Ian Noble, is finalizing the 2009 summer season lineup at Constellation Brands Marvin Sands Performing Arts Center in Canandaigua, N.Y. Additionally, Metropolitan Talent Presents is currently promoting over 30 concerts in the northeast, including four Metallica shows.
All the management division clients: Bruce Hornsby, Art Garfunkel and Little Feat, remain actively touring with ongoing recording projects. Hybrid Recordings continues to work Liza Minnelli's original cast recording "Liza's at the Palace," along with other new music projects, according to the statement.
While Metropolitan Talent is in serious discussions to replace their exiting investor, the layoffs and furloughs were a necessary action due to restructuring and the prevailing economic conditions, according to the statement.
The news comes as buzz about a potential Simon & Garfunkel tour continues to grow. The 2003-2004 Old Friends tour by Simon & Garfunkel grossed $81.4 million and drew 771,276 to 52 shows, according to Billboard Boxscore.