UPDATE 9/29/21 – We have an update on the legal proceedings underway. It would seem that Tix4Tonight has obtained financing to take over their debt, and they should continue operations as normal. If you’d like to read the Debtor’s Pre-Conference Status Report, you can visit it here.
It’s often said that the only constant in Vegas is “change”. Well, get ready for another, as Tix4Tonight has filed for bankruptcy protection. The once-popular discount ticketer seems to have gone the way of dial-up internet, as online services have made it much easier to obtain entertainment discounts. Thrifty tourists have seemingly tired of Tix4Tonight‘s outdoor walk-up counters, which necessitate standing in the intense heat while being inundated with questions from staffers and attempts at upselling.
The “half-off” concept boasted about in Tix4Tonight advertising is rarely actually that. More often, prices are in line with discounts you could easily obtain at third-party sites through your smartphone. Also, Tix4Tonight doesn’t give you the ability to choose your own seats. To make things even less desirable, you’ll most likely receive a voucher in place of an actual ticket, meaning you have to stand in another line at the show venue’s box office. You don’t know what the day’s listings will be until you check scrolling monitors at one of their locations.
In recent years, Tix4Tonight has attempted to broaden its appeal by adding deals for tours, dining discounts, and offers for other attractions besides shows. When reopening earlier this summer, Tix4Tonight rebranded itself as “Tix4Vegas powered by Tix4Tonight”. This post from their official Facebook page was made on August 4th:
We are now open at 3 of our previous locations… Showcase Mall (11-5pm), Bally’s Grand Bizarre (11-7pm) and Casino Royale (11-7pm). Our new name is Tix4Vegas offering shows, tours and attractions at all levels from discount to premium! Stay tuned for more information as we rebound and restart our business…!
Talk of rebounding might have been a bit premature, as TiX4Tonight, LLL voluntarily filed for Chapter 11 bankruptcy protection twenty days later on 8/24/2021. You can read the full document by clicking here, or see below for the short version.
According to Globe News Wire, Tix4Vegas expects to operate with no impact on customers. The company is seeking debtor-in-possession financing “that will serve to supplement the Company s current cash position, enabling it to operate the business uninterrupted and continue to meet its financial obligations.” This includes “the timely payment of employee wages and benefits, lease payments, and other obligations, as well as administering its Chapter 11 cases.”
The company will also pursue a sale of substantially all of its assets “to the highest and/or best bidder through a Court-supervised auction and approval process. Tix Corporation s Board of Directors concluded that the Chapter 11 process represents the best long-term solution for the Company to address its liquidity challenges and strengthen its operations.”
On April 20, 2020, the Company was granted a loan (the PPP loan ) from JP Morgan Chase in the aggregate amount of $980,000, pursuant to the Paycheck Protection Program (the PPP ) under the CARES Act. The PPP loan agreement is dated April 20, 2020, matures on April 20, 2022, bears interest at a rate of 1% per annum, is unsecured, and guaranteed by the U.S. Small Business Administration (SBA). The loan term may be extended to April 20, 2025, if mutually agreed to by the Company and lender.
The PPP loan is payable monthly commencing 10 months after the end of the covered period, which was approximately October 20, 2020. In accordance with the PPP Flexibility Act passed in June 2020, if the Company applies for loan forgiveness within 10 months after the end of the covered period, then no payments are due until the SBA remits payment of a forgiveness amount or determines that no forgiveness is authorized. If the Company does not submit a request for forgiveness within 10 months after the end of the covered period, the Company will begin making payments on the PPP loan. You can read the full details in the Tix Corporation 2020 Annual Report.
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