Schermerhorn Bankruptcy . . . (Parsons: cost, shop, tickets)

[Spikett]

So they built the new center and then the flood knocked them out of commission for almost a full season - not to mention the water damage. They are in dire straits. What are your thoughts? Does Nashville need a world class symphony hall? Are there too many music venues in the area for them to be competitive when presenting live music of various genres? Is there enough local support?

[BirdieBelle]

I do believe there is enough local support, and there is plenty of room for the Schermerhorn in this city. It is a unique venue.

Their problem is financial management. Yes, the flood was a huge setback, but they overpay their staff and botched the handling of the bonds.

[Edgefield D]

I agree with Wmnsn...this is more mismanagement of funds than anything else. I don't know how it will get worked out....but I feel pretty sure it will. There really isn't anything else you could do with that building. It's a top notch symphony hall and it will remain one (I believe). I know plenty of people that go to symphony events there. I'm just waiting to see how it all shakes out.

[nashvols]

Does Nashville need a world class symphony hall? I don't know. But we have one. And whomever would potentially buy it at auction would know that as well. It is a unique venue. Yes, there are a lot of music venues in town...but not a single one that would compare to the Schermerhorn.

I don't think anything that happens with this will change that fact. What would potentially change is whether we can afford a top notch symphony itself.

[Edgefield D]

Originally Posted by nashvols

I don't think anything that happens with this will change that fact. What would potentially change is whether we can afford a top notch symphony itself.

Definitely agree with that Nashvols. I do believe there will be big changes with the symphony itself...who knows what that will be.

[CountryGirl2b=]

This email arrived today from the Schermerhorn . . .


"
To Our Valued Patrons,

As you know, over the past several months we have been in negotiations with our bank lenders in an effort to position the Symphony for long-term financial stability. We are pleased to report that this morning we successfully resolved all outstanding issues with this group. Under the terms of a definitive agreement that was executed today, all of the Symphony’s obligations to its commercial lenders have been eliminated, and the banks’ recent foreclosure notice has been withdrawn.

We are confident that this comprehensive resolution represents the best path forward for all parties involved. With a healthier balance sheet, the Symphony will be in a better position to pursue its cultural mission of engaging the community, enriching audiences and shaping cultural life through musical excellence and educational vision. We deeply appreciate the professional and constructive approach of our bank lenders in the complex negotiations, and we are grateful to our generous patrons, the city of Nashville and the Mayor’s office. All of these interested parties have contributed significantly to the resolution of this matter, and without their support this settlement would not have been possible.

We also want to thank all of you for your unwavering support throughout the negotiation process. In particular we’d like to call out the contributions of one of our longest and most faithful supporters, Mrs. Martha R. Ingram, who stepped forward to provide some of the liquidity needed to close this transaction. We are deeply grateful to Martha for her belief in the critical importance of the Symphony to the Middle Tennessee community, and we understand that her investment challenges us to attract other donors and improve our operating results so that the resolution we’ve announced today endures for years to come.

The loyalty and generosity of our donors and subscribers have helped us to continue pursuing our artistic mission throughout this challenging period, and you will be more important than ever as the Symphony moves forward. While reaching this agreement with our lenders is a major milestone in our restructuring process, the Symphony still has a lot of work to do to further reduce costs. Over the past few months we have taken steps to reduce expenditures, increase revenue and drive contributions in an effort to strengthen our bottom line, but we must remain focused on taking all possible measures to ensure our financial stability. To that end, we will continue to need significant financial support from all of our donors in the years ahead in order to remain sustainable over the long term. As we continue to work toward securing the Symphony’s long-term stability, we remain as committed as ever to our cultural and educational mission, and are confident that the Middle Tennessee community will rise to the occasion to help this wonderful arts organization survive and thrive.

For all of the challenges we are facing, we continue to achieve the highest standard of excellence in musical and educational programs. Response to the 2013-2014 season has been outstanding, and we look forward to seeing many of you at upcoming performances.

As always, thank you for your continued leadership and commitment to this great institution.

Sincerely,
Ed Goodrich
Chairman of the Board
Alan D. Valentine
President & CEO"

[nashvols]

This is certainly very good news. Martha Ingram has continually come to bat for the symphony, and I think we all owe her some thanks and respect for doing that.

The symphony is not out of the woods yet...but this is a big step forward. I think it is clear that they will have to be better with managing their money from this point forward. Even if the building no longer becomes an issue, the viability of the symphony itself still hangs in the balance.

[BirdieBelle]

They should be grateful. That is no way to live, though.

It would be like my racking up thousands in credit card charges to the verge of bankruptcy, then using a bonus or tax refund to pay it all off at the last minute.

I'm glad she was able to step in, but it should not have to happen that way.

[nashvols]

Originally Posted by Wmsn4Life

They should be grateful. That is no way to live, though.

It would be like my racking up thousands in credit card charges to the verge of bankruptcy, then using a bonus or tax refund to pay it all off at the last minute.

I'm glad she was able to step in, but it should not have to happen that way.

It shouldn't have to happen this way. Hopefully it is a wakeup call, rather than say, a kid who is always spoiled by parents bailing them out of trouble. The symphony needs to find a way to live within reasonable means.

I don't think they were completely at fault for the situation they were in, though. Racking up a huge amount of debt by building a world class venue, then having a huge recession and damaging flood follow soon after was quite unfortunate, and even if they were very well managed, they may have found themselves in this situation anyways.

Now, though, they will have fewer excuses if they find themselves on the verge of bankruptcy again.

[Holly1989]

Schermerhorn has had a lot of factors working against it over the past few years. Overcompensation of executives and top-level employees has been one thing, but that's just the tip of the iceberg when combined with poor scheduling, the flood as mentioned previously in this thread, etc.

Honestly, I feel like Nashville mightn't have been at the point of being "developed" enough to be ready for a symphony hall. We forget that while the Metro area is growing, in the realms of culture we are still lagging behind many other cities of a similar size. Nashville is a mecca for country and local rock bands, but it is still branching out from that to explore other genres of music and types of entertainment as well. We're taking baby steps and a lot of people just aren't on board with that yet.

I feel that while in retrospect the Schermerhorn's opening was ill-timed, it needed to happen eventually for Nashville to continue on its path of growth into a regional leader. We don't want to stay in Atlanta's shadow forever when it comes to recreational opportunities and cultural development, so I hope that the Schermerhorn's owners will be more responsible with their finances (and will hopefully be able to attract more visitors) in the years to come.