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The company behind 'American Idol' just filed for bankruptcy

ryan seacrest american idol
ryan seacrest american idol

Ray Mickshaw/FOX

Core Media Group, the company behind "American Idol" and "So You Think You Can Dance," has filed for Chapter 11 bankruptcy in New York.

According to court papers, the company says it owes $398 million. That includes money owed for loans, back payments to former employees, and investors, according to The Hollywood Reporter.

A spokeswoman for Core Media Group provided the following statement to Business Insider:

CORE Media Group remains firmly committed to our mission as a global content and management company producing award-winning programming. In June 2015, with the changing landscape and one of our flagship shows in transition, we proactively engaged in discussions with our lenders regarding balance sheet optimization alternatives and a strategic restructuring. The actions we are announcing today will help best position the company for the future, allowing for more flexibility and a platform for growth. CORE’s operating companies B-17 Entertainment and Sharp Entertainment are not part of the bankruptcy filing, they remain strong and will continue creating a wide variety of popular television shows for more than 30 broadcast, cable and digital networks. We expect to move through Chapter 11 expeditiously and have secured the support of our first and second lien lenders.

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"American Idol" was the company's biggest breadwinner. And now that the show has ended at Fox, the company is unable to find a similar source of revenue.

The company has been seeing losses from a decline in "American Idol" ratings for several years now, however. In 2014, "Idol" earnings decreased by $15 million. And in just the first half of 2015, "Idol" revenue decreased by $35.6 million.

Simon Fuller, the creator of "American Idol," is currently owed $3.37 million. The company's biggest unsecured creditor, Fuller left the company in 2010, but was then given a profit share in his shows and a consulting fee. Its second biggest unsecured creditor is former president Marc Graboff. Currently overseeing Discovery's studios, Graboff is owed $1.32 million in severance pay.

Creative Artists Agency, Dick Clark Productions, and Fox Broadcasting also have profit shares in Core Media shows.

Core Media is currently trying to recoup some loss in a suit against Sony Music over revenue from sales and distribution generated by "Idol" artists.

NOW WATCH: Kanye West auditioned a cappella for American Idol and it was pretty epic

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