Audacy files for bankruptcy

Audacy, the radio broadcasting company that owns Boston radio stations including WEEI and Magic 106.7, filed for Chapter 11 bankruptcy in the Southern District of Texas last Sunday. The second-largest radio broadcaster in the United States has seen its revenue drop in recent years, reflecting a broader decline in advertising spending in the industry. The New York Stock Exchange delisted Audacy from the public exchange in November because of “abnormally low” price levels. “While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending,” said David Field, Audacy’s chairman and president, in a statement. “These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring.” Audacy, which used to be named Entercom, merged with CBS Radio in 2017 to make it the second-largest radio broadcaster in the country — behind iHeartMedia, which owns Boston-based stations including Kiss 108, WBZ NewsRadio 1030, and JAM’N 94.5. Entercom rebranded to Audacy in 2021. In 2020, the COVID-19 pandemic suddenly cut a huge portion of listeners who used to tune into radio while commuting to work, which led to advertisers cutting back on their spending, Audacy said in court filings. While some of that audience is returning, Audacy cited lower office occupancy compared to pre-pandemic levels and a shift to digital audio consumption as reasons why more people aren’t tuning in anymore.