According to Billboard, Mayhem Festival co-founder John Reese’s Synergy Global Entertainment has filed for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court in California’s Central District. The promotion company, which was behind Ozzfest Meets Knotfest, MUSINK Festival, etc., currently “owes $8.4 million to its creditors, according to the filing, and has about $1 million in assets and $54,000 dollars in the bank.”
An August 29 filing also says that SGE brought in nearly $17 million gross revenue for the last eight months of the year. However, the company suffered “large losses” due to low tickets sales for the recent Disrupt Festival Tour and the cancellation of the Mad Decent Block Party Festival.
SGE listed Sumerian Records founder Ash Avildsen as there sole secured creditor. Avildsen loaned Reese $1 million due to the company needing assistance with “a liquidity crisis.”
Reese said the following about the situation:
“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.”
You can read more over at Billboard.
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