Core Media Group, the West Hollywood-headquartered company behind “American Idol” and “So You Think You Can Dance,” has filed for Chapter 11 bankruptcy protection according to the Hollywood Reporter.
Core’s headquarters are 8560 Sunset Blvd. In its New York bankruptcy filing, Core said it owes $398 million, including loans due from Tennenbaum Capital Partners, Crestview Media Investors, Bayside Capital and Hudson Bay Capital Management. The Reporter said Core reports about $73 million in assets but less than $10 million in cash on hand. Simon Fuller, the British creator of “Idol,” is owed $3.37 million.
Core was founded in 2005 by Robert F.X. Sillerman. That year it bought 19 Entertainment from Simon Fuller, acquiring a majority of the rights to the “Idol” (American Idol,” “So You Think You Can Dance” and “Pop Idol”) It also bought a majority of the rights to the name, image and likeness of Elvis Presley, which it sold in 2013.
In its bankruptcy filing, Core said 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.” Bankruptcy filing papers show that in 2014, earnings from the show decreased by $15 million, the Reporter said, while the company’s overall revenue fell $35.6 million in the first half of 2015. “This decline culminated on May 11, 2015 in FOX announcing that it would no longer air the American Idol series in the United States after its fifteenth season,” the Core filings stated.
Core continues to own the recording rights of Kelly Clarkson and Carrie Underwood and other stars. It also owns Sharp Entertainment, which produces unscripted programming for shows such as “My Crazy Obsession. “
