Feeds

Elevator music files for Chapter 11

But keeps on playing

  • alert
  • submit to reddit

Remote control for virtualized desktops

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
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?