Core Media Group, American Idol’s company, files bankruptcy

By: 9 years ago

The company behind the glamorous singing reality show American Idol is ‘signing off’ in the media industry terrain.

Core Media Group filed for bankruptcy on Thursday, defending that it could not supplant its multiplying $398 million debt, according to their court papers.

Core Media group owes several companies millions of dollars, including two loans from Tennebaum Capital Partners, Crestview Media Investors, Bayside Capital and Hudson Bay Capital Management. According to reports, the penniless company has $73 million in assets and less than $10 million cash in the company’s piggy bank.

According to the company’s statement to business news site Fortune, Core Media reiterated that the bankruptcy “will help best position the company for the future, allowing for more flexibility and a platform for growth.”

Since 2003, American Idol garnered 20 million viewers annually and even hiked up to 31 million viewers in 2006. Sadly, the once-top rated show for eight straight seasons plummeted to 13.3 million viewers during its grand finale episode.

American Idol even lost its coveted crown as the most watched show to drama series Empire, according to the Hollywood Reporter.

2014 has been a stern period for the company as their earnings from American Idol diminished by $15 million. The total revenue of the beloved show sank to $35.6 million during the first quarter of 2015.

American Idol was whacked for ‘failing’ to model and prep up phenomenal artists and therefore laboriously banked for celebrity artists such as Jennifer Lopez and Nicki Minaj to be judges in order to grip on the show’s fluctuating populairity. Gianna Francesca Catolico, INQUIRER.net