Lodgenet files for bankruptcy, along with $60 million funding & new DirecTV deal
Skift Take
Will the new funding, new owners and lower capital cost structure save LodgeNet? For now, but bigger picture writing's on the wall, as consumers increasingly use their own devices in hotels.
LodgeNet Interactive Corp. filed for bankruptcy protection with plans to be taken over by affiliates of Colony Capital LLC, which will invest $60 million and work with DirecTV to provide on-demand movies to hotel rooms.
LodgeNet had about $292 million in consolidated assets and about $449 million in consolidated debt as of Sept. 30, 2012, according to court papers filed yesterday in U.S. Bankruptcy Court in New York. LodgeNet reported consolidated revenue of about $379 million for the 12 months ended Sept. 30, according to court papers.
LodgeNet, based in Sioux Falls, South Dakota, provides interactive TV and Internet services to the hotel industry. The company hasn’t posted an annual profit since 2006.
Last year, 95 percent of it
