America's largest radio and podcast company, Audacy, files for bankruptcy with $2 billion in debt, just six months after paying $3.2 million in bonuses to executives
- The broadcaster operates 227 radio stations and produces podcasts from Stephen A. Smith, Dana Carvey and David Spade, among others
- The company announced the request after handing out millions in bonuses at the end of June
- The bonuses included Chairman/President/CEO David Field getting $1 million
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Broadcasting giant Audacy filed for bankruptcy on Sunday, just six months after executives cut $3.2 million in bonuses despite knowing its finances were in dire shape.
The broadcaster, which operates 227 radio stations and produces podcasts from the likes of Stephen A. Smith, Dana Carvey and David Spade, ran into trouble after radio advertising declined.
The Philadelphia-based company has filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas as part of a deal with its creditors, who are taking over the company.
The company announced the filing after handing out the millions in bonuses in late June to “ensure we keep the right team in place and remain focused on continuing to position the company for long-term growth,” it said company. Philadelphia business magazine.
The bonuses included Chairman/President/CEO David Field receiving $1 million, EVP/Strategic Initiatives and CFO Richard Schmaeling receiving $850,000, and EVP/General Counsel and Secretary Andrew Sutor IV receiving $600,000.
Broadcasting giant Audacy filed for bankruptcy on Sunday, just six months after executives cut $3.2 million in bonuses despite knowing its finances were in dire shape, including CEO David Field
His company initially bought Audacy in 2017 for about $1.5 billion the Sentinel source.
A November report said their debts amounted to about $1.92 billion due to the fallout from ad sales.
The bankruptcy deal will reduce that debt burden by about $1.6 billion and will see a group of lenders provide about $57 million in further financing.
In a memo to employees, Field said business should continue as usual and there should be no interruption for anyone getting paid.
“The current leadership team will continue to lead the company and day-to-day roles and responsibilities will not change,” he wrote.
Audacy has been granted a grace period so that it can complete its debt restructuring. The Wall Street Journal reports this.
Advertising hasn't been the only problem, as podcasts – which the company produces itself – have taken revenue away from the radio industry.
Field cited a “perfect storm” of problems in his memo.
The Philadelphia-based company has filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas as part of a deal with its creditors, who are taking over the company
The broadcaster, which operates 227 radio stations and produces podcasts from the likes of Stephen A. Smith (pictured), Dana Carvey and David Spade, ran into trouble after radio advertising declined.
Dana Carvey and David Spade both host an Audacy-powered podcast
“From the global pandemic and the series of subsequent macroeconomic challenges that have created continued headwinds in traditional advertising and materially impacted our business.”
Their competitor, iHeartMedia, filed for bankruptcy in 2019.
The company was founded in 1968 as Entercom Communications before merging with CBS Radio in 2017.
Audacy was the company's major rebrand in 2021, after years of carrying the Radio.com name.
The company operates stations in huge markets, including WFAN and WINS in New York, KROQ and KCBS in Los Angeles, and WBBM and WSCR in Chicago.
Podcasts include hits like Gangster Capitalism and Unsolved Mysteries, as well as projects hosted by Stephen A. Smith, Dana Carvey and David Spade.