This from yesterday's All Access:

------------------------MUZAK Files For Chapter 11------------------------

MUZAK HOLDINGS LLC has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for DELAWARE. The company says that it has previously "reached an agreement with its lenders to access all cash on hand and cash generated from ongoing operations" and is "confident that it has sufficient means to support the business during the Chapter 11 process."

The company has filed motions to allow it to pay employees and provide benefits without interruption, and has asked for permission to honor all outstanding client and promotional programs. KIRKLAND AND ELLIS LLP is serving as legal advisor and MOELIS AND CO. is serving as financial advisor to MUZAK.

"MUZAK is a solid business with an outstanding customer base, but we are burdened with substantial debt obligations established over a decade ago. MUZAK has nearly doubled its cash flows while investing in its operations over the last three years, a period in which MUZAK has also not had the need to seek additional financing, demonstrating that our business continues to perform well even in today's challenging environment," said CEO STEPHEN P. VILLA.

"We believe Chapter 11 will provide us with the opportunity to right size our capital structure and gain financial flexibility, while continuing to operate our business and serve our clients without interruption," he continued. "Our lenders have shown a tremendous amount of support and have committed to funding this restructuring process. We intend to move through this process as quickly as possible, and we firmly believe that this course of action will better position MUZAK for long-term success."

VILLA added, "This process will provide us with the ability to address our outstanding debt position and to continue 'business as usual' at MUZAK -- providing high quality music and messaging products, innovative technologies and superior client service. MUZAK has a strong foundation in place and we are fully committed to making this financial restructuring successful and positioning the Company for sustainable profitability. I would like to thank all of our team members, and I am confident that with their talent, commitment and professionalism, we will emerge from this process as a stronger and more competitive company. I would like to thank all of our loyal clients, independent affiliates and vendors for their continuing support."

I guess part of the problem is more people are taking the stairs instead of elevators these days.

And the other part is there's more in-store music service providers these days (satellite radio, cable TV) but the client base is shrinking as the recession forces the closure of more and more retailers.

Or they cut costs by using satellight radio.

Ya, see the string I started on Sirius-Xm filing chapter 11. Maybe Muzak could sell to Echo-Star along with Sirius and we could have it all !

>>Or they cut costs by using satellight radio<<

Satellight? Is that one of them there newfangled technologies? Or is it satellite radio with 50% less content?

I knew about satellite - in fact I mentioned them as a Muzak competitor in the post above yours.

Isn't that what KQFM used for years? I thought it was a nice change from rock and roll in the 1960's. I would go to a store and hear the same music there as on KQFM.

The New York Times, this courtesy Terry Currier:

http://www.nytimes.com/2009/02/11/business/11muzak.html?_r=1&emc=eta1

If you don't think the proposed music performance fees would have a negative effect on Radio, read the Muzak article that Craig has posted above. Look at the names of the biggest creditors. They are the record companies and ASCAP & BMI. Music Licensors. Now, get on the phone or the internet and contact your Congressman. Tell him/her it is essential that he/she agree to sign on to House Bill HCR 49. It opposes elimination of Radio's performance exemption. We need to win this one very badly. We need your help.

Even if you've never written to your Congressman before, use the internet and ask him/her to support this bill. Google US House of Representatives to find your Rep and get started.

I'm proud to say that those of us in the business here in Texas were able to convince two of our US Congressmen to introduce this bill. I cannot emphasize enough how important this is for the future of our business. Please Help.

If anyone has any questions about this complex issue, I would be happy to pass on whatever knowledge I have to help you understand it.

I absolutely support this. Frankly, reconsidering the Internet fees would be a good move too. They are too high.

Do make your calls. There is absolutely no reason for radio to get roped into this mess. Of all the things mentioned, Internet, Sat radio, etc... only radio operates on a free basis, and (supposedly) operates in the public interest. This difference means radio should be exempt, as it's a service that contributes to the commons we all pay for, in some fashion.

Internet radio could be a source for good content, when things shake out. The current fee structure is too high for that to happen easily though. Satellite radio is a pure option that nobody needs. (not a slam, just an observation) Both should have fees.

Radio should not. And when the ownership stuff settles, it will probably serve us better, like it used to do.

IMHO, the record companies, ASCAP and BMI have gotten a bit too greedy for their own good.