Muzak Suffers in Up and Down Economy
Although it's been around since 1934, everyone's favorite elevator music company, Muzak, may be silenced. Muzak Holdings has filed for Chapter 11 bankruptcy protection. The company has about $340 million in bond dept and owes an additional $105 million. Not a pretty sound.
The company has been recording cheesy-mellow music, covers of popular music, commercial-free, that could be used in public places for a fee much smaller that it would cost to use radio or "original" recordings.
The company has a catalog of over 2.6 million songs, and provides more than just the music. They' design and install sound systems, signs and drive-thru systems.
For now, they will operate even during the Chapter 11 process. Truly, if Muzak goes away, it could be the day the music died. --Leslie Shapiro