Sunday, April 17, 2011

Philadelphia Orchestra Board Officially Filing for Chapter 11 Bankruptcy

We received the news yesterday in an email sent out by Philadelphia Orchestra chairman Richard B. Worley and President and CEO Allison Vulgamore.

The Philadelphia Orchestra is officially filing for chapter 11 protection.

"Our financial situation is serious and the simple facts are these:

  • Our operating funds are rapidly dwindling and will be exhausted by June 2011.
  • While the Orchestra does not have any debt, we are operating at a significant loss with a structural deficit of $14.5 million."
- Quote from the email. 

They assure fans and concertgoers that this seasons concerts will go on as scheduled and that the Philadelphia Orchestra will get back on its feet. 

They have a plan to get the orchestra in a better financial situation through more public events, more media integration in the concerts, and deals such as loyalty programs. This seems to be a wakeup call that orchestras need to start appealing to a wider audience if they are to survive in this society. Even if they are in the top five. 

Read the original email HERE

Read their plan for restructuring HERE.  

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