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22 of 31 employees at Robert Sillerman's new venture have been placed on indefinite leave, with "no assurance" they will have jobs to which to return
By Jon Chapple on 26 Sep 2017
Three quarters of staff at Function(x), the troubled online business founded by former SFX Entertainment CEO Robert Sillerman, have been effectively laid off, with the company telling investors it lacks the funds to pay them.
In its most recent 8-K filing with the US Securities and Exchange Commission (SEC), Function(x) reveals it has been operating with a skeleton staff since 15 September, when 22 of its 31 employees were put on indefinite furlough owing to a lack of “sufficient available funds to continue their employment at this time”.
A furlough – a term chiefly used in the US – is a temporary leave of absence imposed on employees by a company, especially one facing unfavourable economic circumstances.
“Any such decision by the company will depend, in part, on whether adequate funding can be obtained”
In Function(x)’s case, the business says it is “considering whether it will offer any or all of the furloughed employees re-employment” – a decision dependent, “in part, on whether adequate funding can be obtained, and there is no such assurance that may happen”.
Function(x), which specialises in ‘viral’ online content, has been in a downward spiral since early summer, culminating in its delisting from the Nasdaq stock exchange after failing to file an up-to-date current report. In June, auditors for the company resigned after discovering alleged “insufficiently authorised cash disbursements” to Sillerman from its bank accounts.
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