On Feb. 1, 2016, less than three years after a splashy $12-a-share IPO, Robert FX Sillerman’s would-be EDM empire, SFX Entertainment, filed for Chapter 11 bankruptcy protection. The company’s financial records reveal the extent of its overreach, and Sillerman announced he will step down as CEO on March 31.
On Feb. 1 of this year, an investor who held SFX shares since its October 2013 IPO would have lost all but 5 cents per share — a 99.6 percent decline. That financial collapse followed a four-year spending spree during which the company acquired promoters ID&T (with its Tomorrowland, TomorrowWorld and Mysteryland festivals), Made Event (Electric Zoo) and Disco Donnie Presents, along with dance-music download/streaming service Beatport and artist management firm TMWRK.
Below is Sillerman’s farewell letter to the company’s staff, circulated on Tuesday (Mar. 29).
As most of you are aware Thursday, March 31, will be my last day as CEO of SFX. I will remain as Chairman of the Board. The disappointment I know we all feel should not be the lasting impression that remains. We had a bold vision, a revolutionary one. That we stumbled along the way can never detract from the energy and hope that brought us all together. As we enter this next phase, despite the place we find ourselves, there is much to be proud of. It remains incumbent on all of us to refocus our energies and find the path to success that is out there. I am confident that with renewed discipline combined with passion and creativity that our original goals can and will be met.
As Chairman I remain available to help in any way that I can. I maintain both an emotional and financial interest in our company’s success and intend to participate as and when called upon. As such this is anything but a goodbye; rather a reset of roles with a renewed emphasis on collaborative success. While we aren’t where we wanted to be, and will be, it has been an honor and a pleasure.