Philadelphia Orchestra Re-Emerges from Bankruptcy!

Good new for classical music lovers everywhere!  The Philadelphia orchestra re-emerged from bankruptcy last month.  Orchestra chairman, Richard Worley, described exiting bankruptcy as“getting out of jail.”  Despite these feelings, orchestra chairman felt bankruptcy (Chapter 11) was still the right choice at the time.  Worley was grateful for all the individuals who “helped save this wonderful, living, breathing treasure.”  The orchestra received a $50 million dollar “gift” which is being moved to an account at Northern Trust.

Loose ends still need to be tied in the month of September.  Litigations continue to address $180,000 for 2 concerts that have yet to be paid by a South Korean presenter.  Furthermore, “a Sept. 24 hearing will consider some of the 85 claims by creditors being contested by the association”.

 

Experts believe there are many reasons contributing to the bankruptcies of several orchestras’ around the country, such as Honolulu Symphony and Syracuse Orchestra.  One of the major reasons is the decline in interest of classical music among the newer generations.  Although classical music has survived the era of jazz, big band, and swing, the cut in music programs throughout the United States is also preventing the younger generation from learning about classical music, thereby contributing to its overall decline. 

Experts also believe there is a connection between the bankruptcies of orchestra and the cities to which they belong.  Cleveland is a prime example.  Once regarded as a “jewel of the Midwest”, Cleveland is now a struggling industrial city. As more and more Cleveland residents have moved away to secure jobs, the city’s orchestra also lost patrons.

http://americancity.org/daily/entry/the-orchestra-and-the-city

The Philadelphia Orchestra should take the Rochester Philharmonic Orchestra as an example of what to do.  By adapting to change the Rochester Philharmonic Orchestra was able to recover from bankruptcy.  Reinvention will be key.

The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.