Ticketing-services provider Tix Corp. has filed for bankruptcy after the COVID-19 pandemic affected trading.
Tix Corp. operated discount ticket stores in Las Vegas through its Tix4Tonight brand and its online ticket sales site. However, the pandemic led to physical stores being unable to operate, and online and physical sales suffering due to the cancellation and postponement of shows.
The company has filed for chapter 11 protection in the US Bankruptcy Court for the District of Nevada. A chapter 11 file usually means that the debtor can remain in possession of the business, has the powers and duties of a trustee, may continue to operate and if the court approves, borrow new money.
While Tix Corp. said it will sell all of its assets, the company also stated that it will seek to obtain debtor-in-possession financing from lenders, which will allow it to continue to operate as a business and meet its financial obligations. These include the payment of employee wages, benefits and lease payments.
As restrictions have eased in the US, shows and events have begun to return to Las Vegas. Tix Corp. said that its Tix4Tonight should continue to operate without affecting customers. It recently re-opened three of its stores, following a long closure during the pandemic.
The company was already struggling, and was contemplating whether or not it would be able to continue to operate its seven physical stores in its 2020 financial results report.
While the live entertainment sector is starting to open up, events could still be affected by the spread of the Delta variant and protocols such as mask wearing.
Nevada Governor Steve Sisolak recently introduced a new Emergency Directive around large events in cities such as Las Vegas. Attendees to concerts, shows and sporting events could forgo wearing a mask if they could prove full vaccination.
In response, the Las Vegas Raiders became the first National Football League (NFL) team to ask fans to prove their vaccination status so they didn’t have to wear a mask inside the Allegiant Stadium.
Image: Nick Fewings on Unsplash
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