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Disrupt Festival promoter Synergy Global Entertainment files bankruptcy

The concert promotion company was responsible for festivals such as Rockstar Disrupt, Ozzfest Meets Knotfest and more.

September 9, 2019
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Synergy Global Entertainment, the independent concert promotion company started by  John Reese, has filed for Chapter 7 bankruptcy protection. The filing reveals the company owes $8.4 million to its creditors.

The company is behind many major music festivals such as Ozzfest Meets Knotfest and this summer’s first Rockstar Disrupt Festival.

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According to Billboard, lawyers for the company filed for bankruptcy protection in U.S. Bankruptcy Court in California’s Central District.

The filing states SGE owes $8.4 million to its creditors, with $1 million in assets and $54,000 in the bank.

Reese reveals he had hoped to expand in 2019 after growing by more than 30% in 2018. However, significant loss from the Disrupt Festival, which canceled a handful of dates and downgraded venues for undisclosed reasons at the time, and the cancellation of Mad Decent Block Party Festival hit the company hard.

Read more: Rockstar Disrupt Festival cancels Columbus stop three days out

“After having creative impact in over 45 Festival Brands and Tours in the company’s history, we most appreciate the years of partnerships with fans, artists, brands and vendors,” Reese writes in a statement to Billboard.

Listed as the company’s only secured creditor is Ash Avildsen, founder of Sumerian Records. Avildsen loaned Reese $1 million on June 24 after SGE faced “a liquidity crisis” and “needed help.”

“All of his summer events were already booked and on sale so there was no time to do proper due diligence. Hence it was a very risky investment but I care about John and the SGE family dearly,” he writes.

Read more: Kellin Quinn joins the Used onstage at Disrupt Festival after Twitter collab request

You can read Reese’s statement on the bankruptcy below.

It is with deep regret and after exhaustive efforts to save the business, SGE is now closed. 

“After 15 years as a successful festival promoter, SGE was hit by a perfect storm of adverse market conditions and a massive drop in ticket sales and RPT (Revenue Per Ticket) since late April of this year compared to historical ticket sales metrics. As a result of these issues, the negative economic impact for SGE became untenable.

After having creative impact in over 45 Festival Brands and Tours in the company’s history, we most appreciate the years of partnerships with fans, artists, brands and vendors”

The full bankruptcy filing can be found here.

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Written by Whitney Shoemaker

Whitney is your definition of pop punk trash. If she's not jamming to State Champs or Grayscale, then she's probably out enjoying the finer things or working a show for Fearless Records as a Street Team Leader. She's a realist and an optimist, calling the city of Columbus her home. A huge fan of naps, Whitney often falls asleep in a city that doesn't. She's not hard to please, finding joy in discovering new bands or playing Everlong on the late night radio. Working at Alt Press and breaking ground in the music scene have always been a dream of hers, telling herself at an early age she was down for losing it all to make that happen! Now the weekend writer at AP, Whitney is prepared to be noticed and eager to contribute to the scene. If you catch her at a concert feel free to stick around, make small talk, or discuss her overuse of State Champs lyrics and song titles in her bio.