Townsquare Faces Bankruptcy Over Debt

The second attempt to sell Townsquare is over but the company’s financial troubles are just beginning.

If we know this, certainly their private equity owners are aware of it.  Townsquare didn’t try that sale “Hail Mary” for nothing.

They reportedly paid Houlihan Lokey somewhere between $50-100,000 to in effect tell them what everyone already knew – there are no buyers.

But now that Townsquare is forced to operate as is, they have debt problems that could be the biggest challenge to the company’s viability since it went public.

This has huge repercussions for not only their employees, but competitors in markets where they currently operate and for investors who are still drinking the Kool-Aid that Townsquare is a digital company.

No company tries to sell itself two times – unsuccessfully at that – unless they know something they don’t want to talk about.

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