Feeds

Elevator music files for Chapter 11

But keeps on playing

  • alert
  • submit to reddit

The next step in data security

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
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
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
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.