Core Media Group, the company behind American Idol and So You Think You Can Dance, has filed for Chapter 11 protection in Manhattan. Core was part of the joint venture which also combined Shine and Endemol to create Endemol Shine Group. However, Core continued to operate as a separate company with its own capital structure and was never integrated. American Idol concluded its 15th and final season on Fox on April 7.
Core is also the parent of 19 Entertainment and Sharp Entertainment. Sharp and operating company B-17 Entertainment are not part of the filing, Core confirmed.
In a statement provided to Deadline, Core said it “remains firmly committed to our mission as a global content and management company producing award-winning programming. In June 2015, with the changing landscape and one of our flagship shows in transition, we proactively engaged in discussions with our lenders regarding balance sheet optimization alternatives and a strategic restructuring. The actions we are announcing today will help best position the company for the future, allowing for more flexibility and a platform for growth.”
B-17 and Sharp, “remain strong and will continue creating a wide variety of popular television shows for more than 30 broadcast, cable and digital networks. We expect to move through Chapter 11 expeditiously and have secured the support of our first and second lien lenders.”
According to the U.S. Bankruptcy Court docket, Core and nearly 50 affiliated debtors registered the filing, Bankruptcydata.com says. The court documents said in part that despite Core’s long-running success, it “has recently experienced deterioration in its financial performance, primarily attributable to the decline in ratings for American Idol and the corresponding decline in revenues from Idols-related broadcast fees, international tape sales for rebroadcasts, touring fees, sponsorships and Idols-related merchandise sales… [T]he Company’s unsustainable capital structure, inability thus far to replace the American Idol revenue streams and inability to consummate an out-of-court restructuring with its primary creditor constituencies ultimately gave rise to the Debtors’ decision to commence these chapter 11 cases.”
The Chapter 11 petition is said to indicate total assets of $100M to $500M.