Feb
2009
Muzak, the company that has punished elevator users for over 75 years with their hideous “music” renditions, has filed for chapter 11 bankruptcy protection.
According to Bloomberg.com, Muzak filed for bankruptcy this week with credit problems of $465.3 million, but listed assets of only $324.2 million. The problem is that the company pushed a lot of their debt to mature in the early part of 2009 seeing as they were relying on a merger or sale of the company to help them control the debt. Now that neither has happened, the company was left with only the option of filing for chapter 11 reorganization.
According to TheStreet.com, this is a list of how some of their debt breaks down.
- U.S. Bank NA – $371 million
- Universal Music Enterprises – $349,321
- EMI Capital Records – $320,323
- AT&T – $257,384
- Dish Network – $251,276
- The American Society of Composers, Authors and Publishers – $213,020
- Companies without amounts listed include Sony Music, BMG Film & Television Music, United Parcel Service and Virgin Records
How in the world do they owe U.S. Bank $371 million? What were they taking out loans for that would amount to anything close to that? The music companies aren’t surprising since they have to pay out royalties for all of the music they play, but in general this is a company that sends out music and nothing else. I know in the old days they were sent out by tape, but I would imagine in this day and age they transmit their products by satellite to the elevators. What is even more frightening is that their list of secured creditors has yet to be released, so this is possibly only the tip of the iceberg.
While there are so many saddening stories right now of companies cutting jobs or going out of business, this is one that just leaves my head spinning. How could a company with such a simple concept be so badly mismanaged? And how could a bank, one I happen to have accounts with, allow a company to have $371 million dollars in unsecured loans? What was that money going to?
I feel sorry for the companies owed money… okay, not really, my feelings towards the music industry machine aren’t really a secret, but I do feel sorry for the artists. Hopefully they will be able to get the debt problem settled, and get the money out to those they owe. If not, think of how much more pleasant a ride in the elevator will be next time when there isn’t some overly jazzed up version of The Beatles “Hey Jude” playing in the background.


It’s true folks, Hollywood is in deep crisis… of morals that is.
The movie industry had a record year for revenue in 2008, but actual attendance was down.
Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler all deserve to be strung up by their toes.
I think it’s time for a small change in how blogs give credit to one another for where stories come from.
Deutsche Post has announced they will cease domestic shipping inside of the USA.
You know, it fascinates me how airlines and companies like
Yesterday Alex Carnevale over at
The
Even though I have been in business for over 22 years now, I will never claim to understand all the trappings of high finance. What I will say is that all of these people involved with some of the stupid mistakes made on behalf of companies like Lehman Brothers and AIG could do with going back to their most basic business classes.
Edgar Bronfman, Jr is back.
When is this industry ever going to learn that their greed is doing nothing but angering the consumers, and they keep killing the golden goose that keeps laying eggs for them. Sure, they’re making money from Pandora, but not ENOUGH. Yes, they are making money from Rock Band, but not ENOUGH.
Hard to believe it, but
1999 saw us doing so much business in anime products from Japan, we opened a sub-division named AnimeUSA. We were traveling to more and more conventions around the country, and showing up at an anime show calling ourselves “Splash Page Comics” just didn’t make much sense.


