Las Vegas ticketing group Tix Corporation has expressed uncertainty over whether it will be able to resume operations as its 2020 financial results were significantly impacted by the closure of entertainment on the Strip due to COVID-19.
For the year to December 31, 2020, the company saw a net loss of $4.72m, compared to a net loss of $2.97m in 2019. In addition, revenue decreased 85 per cent to $1.96m.
The operator, which provides discount ticketing services for concerts and shows via its Tix4Tonight brand, has closed all seven ticket booths of the business that is geographically concentrated in the Las Vegas marketplace, via MGM Resorts and Cirque du Soleil shows.
In March 2020, Tix Corp laid off the majority of its employees and suspended sales to shows, attractions and tours due to the coronavirus.
Tix Corp said: “We are continually monitoring the Las Vegas entertainment marketplace to determine when and if we will be able to commence viable operations again.”
It also said it plans to seek additional available disaster assistance, as well as other forms of financing to help with liquidity during this disruption to its business.
Most hotel properties have recently reopened in Las Vegas, along with some shows, attractions and dining with “extreme limitations” on their capacities and operations. Shows can open with 50-per-cent occupancy or 250 customers, whichever is less, along with a pre-approved COVID-19 prevention plan.
Tix Corp said it is addressing each property’s COVID-19 ticket sales protocols, coupled with their timing and availability of ticket inventory.
Since April 2020, Tix has not made the majority of its lease payments, and is in default on the majority of its operating leases due to the impact on the business related to COVID-19. As of December 31, the total amount of past due lease payments was approximately $1.1m and the company said it is in discussions with its landlords to restructure its leases.
Last month, Bandera Master Fund LP sued Tix Corp in the Delaware Chancery Court demanding to inspect various company books and records. Bandera, which owns about 11 per cent of the entertainment ticket company’s shares, accused Tix Corp of failing to formally respond to demands for information on a recent agreement to sell more shares to the firm.