Feeds

Elevator music files for Chapter 11

But keeps on playing

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Muzak isn't just musically bankrupt. It's financially bankrupt.

Yesterday, the South Carolina brain-softening outfit filed for Chapter 11 bankruptcy, after failing to make a $105m payment to its creditors. But CEO Stephen P. Villa says the elevator music will play on - and on and on.

"We believe Chapter 11 will provide us with the opportunity to right size our capital structure and gain financial flexibility, while continuing to operate our business and serve our clients without interruption," reads a canned statement from the CEO.

"We intend to move through this process as quickly as possible, and we firmly believe that this course of action will better position Muzak for long-term success."

Villa says that Muzak's cash flow has doubled over the last three years, insisting that businesses will still pay good money for watered-down pop music - even in "today's challenging environment."

A company court filing says the company's total debt is between $100m and $500m. A single creditor, US Bank, is owed $371m.

Muzak says that its "sensory experiences" reach 100 million people each day. And not all of it is piped through elevators. You can hear its strings-heavy pop playlists while standing in other parts of a retail establishment - and while your telephone is on hold. Together with a network of private partners, the company also designs and installs sound systems, drive-thru systems, and digital signs. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.