Muzak Files for Chapter 11 Bankruptcy Protection

Muzak Holdings LLC, best known for providing background music in elevators, hotels, and stores, has announced it has filed for Chapter 11 bankruptcy protection to restructure its debt.

"We believe Chapter 11 will provide us with the opportunity to right size our capital structure and gain financial flexibility," Chief Executive Stephen Villa said in a statement.

In documents filed with a U.S. bankruptcy court, Muzak listed assets of $324.2 million and liabilities ranging from $100 million to $500 million. The Fort Mill, South Carolina-based company also listed debt of $465.3 million. 

Muzak, which is majority owned by private equity fund ARBY Partners LLC, said it has sufficient means to support the business during the Chapter 11 restructuring process. The company says suppliers will continue to be paid for goods and services, customers will still receive services, and employees will continue to be paid their wages. Muzak currently has about 1,250 employees throughout the country.

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