Following the failure of SFX to meet a large number of profit benchmarks, a Florida company known as Amnesia is looking for a way out of their contract with the company, and exit complicated by SFX‘s state of bankruptcy.
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Guest Post by Dave Brooks on Amplify
A Florida company called Amnesia is hoping to forget about a night club management deal with SFX after the company missed revenue targets for one of Amnesia’s Miami Beach party spots.
On Friday, attorneys for Amnesia International, which operate the Story nightclub, filed a motion for relief with the bankruptcy judge overseeing the SFX Chapter 11 filing (read the motion here). In their filing, Amnesia officials said that SFX had failed to meet a number of profit benchmarks for the nightclub and asked the judge to allow them to terminate their contract with SFX. In 2015, SFX was supposed to bring in a minimum profit of $2.5 million for the nightclub — instead they lost $412,499. Throughout their three-year contract, SFX never came close to hitting the agreed-upon up profit requirement, coming up short $7.5 million from 2013-2015. The nightclub was profitable in 2013-2014, generating a $2.5 million profit, but falling far short of its required profit of $7.3 million for the same period.
The case also involves MMG Nightlife, which has an agreement with Amnesia to operate Story and two LIV nightclubs, one at the Fontainebleau Miami Beach and the other at Sun Life Stadium. MMG signed an agreement to manage Story in 2012, which then assigned the management contract to SFX-Nightlife Operating, LLC.
Attorneys for Amnesia had tried to end the contract with SFX and MMG on February 29, but because the SFX was in bankruptcy, an automatic stay prohibited “Amnesia from delivering a notice of termination to Nightlife.” They’re hoping judge Mary F. Walrath will allow them to officially terminate their contract with SFX.
Dave Brooks has over 15 years experience as a writer, including eight years as the Managing Editor of Venues Today. He started Amplify in 2014 to give the industry its own voice and turn up the volume on live entertainment.