I think most of us babyoomers know about MUZAK. It is derisively called "elevator music" by many of us as we turn up our noses. Still, there was time when Muzak seemed to be the trend of the future and the belief was that everyone would love having music in stores and airports and most public gathering spaces. But...time marches on and people are more sophisticated musically. There are so many options today and Muzak, the "one size fits all" musical solution no longer fits us!(CNN) -- Muzak, the company that put pop, string-filled arrangements of rock songs in your elevator, filed bankruptcy papers Tuesday after it missed a $105 million payment to creditors.
The Muzak company is best known for background music piped into places such as elevators.
The pipeline of easy listening will continue to flow as Muzak restructures its debt during the Chapter 11 process, the company said.
"Muzak is a solid business with an outstanding customer base, but we are burdened with substantial debt obligations established over a decade ago," Muzak CEO Stephen Villa said.
Muzak's cash flows doubled in the last three years, Villa said, "demonstrating that our business continues to perform well even in today's challenging environment."
Along with its ubiquitous elevator offerings, Muzak and its 14 affiliates -- all privately owned -- produce on-hold messages and install sound systems, digital signs and drive-thru systems for retail businesses.
Bankruptcy documents showed Muzak owes its largest creditor -- U.S. Bank -- about $370 million, nearly all of it due this year.
Muzak spokeswoman Meaghan Repko said the filing was voluntary and in cooperation with the creditors.
The weakened global economy was not a factor, she said, noting the company's profits have been rising in recent years.
The Chapter 11 protections will allow Muzak time to restructure the debt, which was incurred a decade ago, she said.
The Muzak company is best known for background music piped into places such as elevators.
The pipeline of easy listening will continue to flow as Muzak restructures its debt during the Chapter 11 process, the company said.
"Muzak is a solid business with an outstanding customer base, but we are burdened with substantial debt obligations established over a decade ago," Muzak CEO Stephen Villa said.
Muzak's cash flows doubled in the last three years, Villa said, "demonstrating that our business continues to perform well even in today's challenging environment."
Along with its ubiquitous elevator offerings, Muzak and its 14 affiliates -- all privately owned -- produce on-hold messages and install sound systems, digital signs and drive-thru systems for retail businesses.
Bankruptcy documents showed Muzak owes its largest creditor -- U.S. Bank -- about $370 million, nearly all of it due this year.
Muzak spokeswoman Meaghan Repko said the filing was voluntary and in cooperation with the creditors.
The weakened global economy was not a factor, she said, noting the company's profits have been rising in recent years.
The Chapter 11 protections will allow Muzak time to restructure the debt, which was incurred a decade ago, she said.
