In June 2011, Stratus Media Group Inc. acquired 95% ownership in the MMA promotion ProElite, Inc. Stratus also owns a business line that operates film screenings, luxury wine and collectible cars shows in cities such as Santa Barbara, Miami and Las Vegas. ProElite, under the new ownership held their third event this past January in Hawaii which was headlined by Kendall Grove vs. Ikuhisa Minowa.
But parent company Stratus has found themselves in a big financial mess. Julian Moore from the Pacific Coast Business Times recently reported:
In June, Paul Feller was ousted as longtime CEO and was replaced by board member Jerry Rubenstein. Stratus lost $15.8 million in 2011 on a mere $570,476 in revenue and has struggled to regain its footing after briefly shutting down in 2009. The firm faces lawsuits from a number of investors who claim they were misled and its former landlord who says the company owes $200,000 in back rent and damages related to its downtown Santa Barbara offices.
Amidst all the chaos, Stratus released their quarterly financials ending June 29, 2012 which showed a Net Income loss of $3.375 million dollars. This is compared to a Net Income loss of $2.479 million from the previous quarter. Former CEO Paul Feller has been given four months to help secure $2 million in new capital or he’ll lose his $20,833 per months paycheck.
The Aug. 17 quarterly report also stated:
As a result of the lack of working capital, Stratus has no events currently scheduled pending receipt of sufficient funds from financings which it is currently pursuing. In the absence of obtaining sufficient funds, Stratus will be unable to schedule or reschedule some or all of its events and implement its business plan.
T. Jay Thompson, who was brought in as ProElite’s Head of Fight Operations recently responded to this tweet when asked about the promotion:
Payout Perspective
With no working capital there are no ProElite events planned for the foreseeable future. Stratus is actively pursuing financing however it remains to be seen how successful that venture will be. With the company bleeding money and multiple investor lawsuits pending, the future looks pretty grim.
Source: http://feedproxy.google.com/~r/Payout/~3/nSvc2rwsEMo/
Matt Andersen Alex Andrade Jermaine Andrè Yoji Anjo Ao Hailin
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