Is the market for custom-tailored background music sustainable?  That is the lingering question as Muzak trudges through bankruptcy proceedings.  Just this week, the company filed its restructuring plan with the US Bankruptcy Court in Delaware, a proposal designed to slash a debt load of $462 million in half.  That follows an initial bankruptcy filing in February, and the company indicated that major stakeholders and creditors are mostly on board.

Part of the plan involves swapping debt for equity, an approach that requires faith in long-term recovery prospects.  But the business of in-store, ‘elevator,’ or retail mood music is getting tricky, especially as businesses weigh cheaper options.  Just recently, rumors circulated on a plan by Wal-Mart to commission writers to compose copyright-controlled in-store music, though the company would not confirm the strategy.

In the here-and-now, the bankruptcy court has yet to approve the Muzak plan.  The company indicated that customer accounts would continue to be serviced as normal.