Published Sep 09, 2019Synergy Global Entertainment — the independent U.S. concert promoter behind such events as the Rockstar Disrupt Festival Tour, Mad Decent Block Party Festival and Ozzfest Meets Knotfest — has filed for bankruptcy.
Today lawyers for the company started by promoter John Reese filed for Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in California's Central District, Billboard reports.
According to the filing, SGE owes $8.4 million USD to creditors, with $1 million in assets and $54,000 in the bank.
In a statement to Billboard, Reese explained the sudden and swift downfall of SGE with the following statement:
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.
Reese was hit hard this year, with SGE taking huge losses from the 25-date Disrupt Festival Tour, which was headlined by the Used, Thrice and Sum 41 and suffered from poor ticket sales. Plus, the Mad Decent Block Party Festival Foxborough, MA, that was supposed to bring in Billie Eilish, Major Lazer and Miguel was cancelled shortly before it was to begin.
SGE was also behind such events as Surf City Blitz and Lost Lands, among others.