The Crumbling Cookie

A recent report listed 15 companies that may not survive 2009 – and among the whoppers are several companies whose demise could have ramifications for the concert industry.

U.S. News & World Report applied data from Moody’s Investors Service and predicted the potential crash of such household names as Rite Aid, Chrysler and Krispy Kreme. And that’s not all.

Trump Entertainment Resorts Holdings may go away. Stock has dropped 94 percent over the last year and the casino company has received several extensions on interest payments, according to U.S. News.

“With casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy,” the report said.

Another casualty could be Blockbuster, the current physical kiosk for Live Nation Ticketing. Blockbuster has made several stock-plummeting decisions over the past few years, and two credit lines expire in August. U.S. News suggests the company could go private and return to public when market conditions improve.

Station Casinos, which runs 15 Las Vegas casinos, may be on its way to the poor house. The company failed to make a key interest payment, “which is often one of the last steps before a Chapter 11 filing,” U.S. News noted.

Six Flags, which has been hemorrhaging cash for years, has seen an 84 percent stock drop over the last year. Moody’s expects cash flow to be negative in 2009, according to the report, and a slow summer season could be the final nail in the coffin.

Finally, Sirius Satellite Radio may disappear. This one may not be a shocker. The company is one of two satellite-radio services owned by Sirius XM and it has seen a 94 percent stock plummet.

“One outcome could be a takeover, at distressed prices, by other firms active in the satellite business,” U.S. News reported.