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Avant Gardner filed for bankruptcy in Delaware on Monday, blaming construction delays and permit troubles at its flagship Brooklyn Mirage venue that derailed its 2025 season and left the company drowning in debt.

The electronic dance music powerhouse, founded in 2017, disclosed $155.3 million in funded debt and announced plans for a Chapter 11 auction of its assets. Its lenders have agreed to back the restructuring with a $45.8 million debtor-in-possession loan and are negotiating to serve as a stalking horse bidder.

CEO Destructo: “Most Viable Path Forward”

CEO Gary Richards, also known on stage as EDM DJ Destructo, said bankruptcy is the only realistic path to stabilize the business after Mirage renovations stalled.

“This Chapter 11 restructuring will allow us to reset, protect our assets, and build for the future,” Richards said in a statement.

The Mirage, which can host 5,300 guests, was slated to reopen in May with new technology and structures. Instead, the New York City Department of Buildings pulled a temporary operating permit in late April, leaving the summer concert season canceled and thousands of prepaid tickets stranded.

Festival Woes and Mounting Lawsuits

Avant Gardner’s troubles deepened in 2023 when last-minute operational chaos at the Electric Zoo festival sparked lawsuits from more than 75,000 ticket holders. The consolidated class actions, now pending in federal court in Manhattan, weighed heavily on the company’s finances and reputation.

The company also said it faced aggressive collection efforts from contractors and lenders tied to Mirage renovations, forcing the Chapter 11 filing.

Debt Mountain and DIP Financing

The company’s balance sheet shows a $121.1 million secured loan, $20.8 million in secured advances, $11.8 million in junior notes, and another $1.5 million in unsecured debt. On top of that, Avant Gardner is fighting over $11.4 million in disputed cash advance agreements with lenders including TVT Capital Source, Insta Funding, and Pinnacle Business Funding, which it intends to challenge in bankruptcy court.

Its lenders have committed to a $45.8 million DIP package — $25 million in fresh cash and a rollup of existing debt — and plan to credit bid as stalking horse at the auction. The company hopes to close a sale before November.

Doors Stay Open at Other Venues

While the Mirage remains shuttered, Avant Gardner confirmed that its other venues — the Great Hall and Kings Hall — will stay open during the case, with Mirage shows relocated elsewhere.

The case has been assigned to U.S. Bankruptcy Judge Mary F. Walrath. Avant Gardner is represented by Young Conaway Stargatt & Taylor LLP.