After filing for bankruptcy earlier this year SFX Entertainment have been selling off their assets, but they’ve decided to remove music store Beatport from the market because it’s just too popular.
SFX filed for bankruptcy earlier this year in February and have since been trying to sell the company’s assets, which includes the digital EDM store Beatport. SFX even closed all elements of the store besides digital download purchases, but that turned out to be a good move as they’ve begun making enough money that selling the store no longer makes sense.
It was revealed via a court filing that Beatport was no longer for sale earlier this month, and we now know that is due to a revived success in the online music marketplace. Whether Beatport’s renewed life and profits will be enough to save SFX entirely isn’t clear but it’s proving to be their most prosperous asset and seems to have become their primary focus.
A statement from SFX says: “Our renewed focus on the Beatport Store, following our announcement of platform changes in May 2016, has been well-received and successful. The changes we implemented have laid a strong foundation for Beatport that have dramatically improved its profitability.
“As a result of these improving trends, SFX has determined that retaining ownership of Beatport is in the best interest of the company and has withdrawn its motion to sell Beatport through the Chapter 11 [bankruptcy] process. We look forward to emerging from Chapter 11 in the next few months a strong and vibrant business, positioned to pursue both organic and strategic growth options.”
We will have to wait and see what this means for the future of Beatport and SFX but the future looks brighter than the years start for them. SFX have recently doubled their share prices after dropping to an all time low of 1 percent.