Just a month after its big series finale, news has emerged regarding an “American Idol”-related bankruptcy. According to the Hollywood Reporter on Thursday, the company behind both “Idol” and “So You Think You Can Dance” has filed for bankruptcy protection. The company Core Media Group has indicated that the cancellation of the iconic Fox show played a part in its financial woes.
Reports detail that the parent company to “American Idol” filed bankruptcy in part because the show’s creator, Simon Fuller, demanded payment earlier in the month of the $3.37 million owed to him. Many fans will remember that Fuller left the show several seasons ago, but he continued to be connected to “Idol” as a consultant and he was due a share of the show’s profits. In total, Core Media Group shared that it owes $398 to various entities and has just $73 million in assets with just $10 million in available cash.
The filing notes that declining ratings for the show, and its recent cancellation, was the catalyst for the “American Idol” parent company’s bankruptcy. As CNN Money details, early seasons of the show garnered ratings from 20 million to almost 31 million viewers across the season. However, by the end of the show’s run, it was no longer a top Fox performer and the finale snagged about 13.3 million watchers.
Core Media Group has a long list of creditors waiting to be paid and it details that it now feels it has no choice but to proceed with the filing. “So You Think You Can Dance” has never garnered the kind of ratings that “Idol” did. However, it is still airing on Fox and a new season featuring teen dancers and “Dance Moms” star Maddie Ziegler begins this spring. Will this “American Idol”-related bankruptcy filing do the trick to pull Core Media Group out of the red?
Updated: The show’s producer has provided a statement related to the company’s bankruptcy filing:
“CORE Media Group 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. CORE’s operating companies B-17 Entertainment and Sharp Entertainment are not part of the bankruptcy filing, they 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.”
