You Know The Economy Is Bad When Muzak Goes Broke

By Ned Hepburn on February 11th, 2009

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You know the economy is bad when Muzak, the company that provides elevator music, goes broke.

In a move that could be shocking to some (but somewhat of a relief to all of us familiar with the ‘Girl From Ipanema’ being played on a cheap keyboard being played through cheap speakers), Muzack has filed for Chapter 11 bankruptcy.

After being $105 million in debt last month, their extension from U.S Bank NA ran out yesterday. And TheStreet.com is reporting that the total debt could be anywhere between $100 million to $500 million. Five hundred million dollars? Jesus. And I thought student loans were a bitch.

The debt they owe comes down to many, many smaller debts to the various music groups for the rights to their songs. The South Carolina based company now only has less than $50,000 in assets, which, considering they’re being played from elevators to coffee shops to the dentist, is a tiny sum of money.

Via TheStreet.com