Austin’s Mood Media Comes Out of Chapter 11 Bankruptcy
Austin-based marketing firm Mood Media said it emerged from Chapter 11 bankruptcy following a court-supervised expedited process.
When the company filed for bankruptcy last month, it said it had entered into a restructuring support agreement with certain lenders, ticket holders and stock sponsors in what it called a “prepackaged” financial restructuring plan.
As part of the plan, the company filed voluntary Chapter 11 reorganization petitions in Texas bankruptcy court.
Mood Media said the plan would reduce the company’s debt by $ 404 million, which it said would provide “financial flexibility and position the company for long-term success.”
Founded in 2004, Mood Media provides a platform called Harmony that offers in-store music, digital signage, fragrance, audio and visual systems, and interactive mobile marketing products. Its in-store perfume service allows customers to choose from 1,600 fragrances or create their own.
Mood Media has made numerous acquisitions in recent years which have extended its presence in Europe, North America, Asia and Australia. The company’s international subsidiaries were not part of the case.
The bankruptcy filing came as retailers, hotels and other businesses around the world struggle to plunge foot traffic and revenue amid the coronavirus pandemic.
Mood Media’s markets range from retailers and hotels to restaurants, banks, and small businesses such as salons, spas, and breweries. The company says its services reach 150 million customers every day at 400,000 business locations in more than 100 countries.
Customers include Macy’s, Target, Williams-Sonoma, Whole Foods Market, and Mercedes-Benz.
According to the bankruptcy filing, Mood Media has assets between $ 500 million and $ 1 billion and liabilities between $ 500 million and $ 1 billion.
The restructuring has allowed Mood Media to emerge with a stronger balance sheet and the financial means for long-term viability, officials said.
“Having completed our financial restructuring incredibly quickly, we now have the financial flexibility to focus our resources more on re-imagining our business so that we can better serve our customers,” said David Hoodis, CEO of Mood Media. “We look forward to continuing to work closely with (customers) as their businesses reopen and their customers and employees return to their stores.”
As part of the filing, the company said it has received a commitment of up to $ 240 million in new funding, including $ 40 million in new capital, from HPS Investment Partners and other senior term lenders.
The new funding, along with cash generated from ongoing operations, provided liquidity for Mood Media to continue operating during and after the Chapter 11 process, the company said.