Local radio is in a state of collapse. Cumulus Media, Audacy, iHeartMedia, and Spanish Broadcasting System (most recently on May 11) have all filed for Chapter 11 bankruptcy.

Radio stations might have swapped formats during the heyday of the medium, but they rarely simply shut down. WBCN, for example, a pioneering rock station in Boston, simply turned off its signal in 2009.

That was an early sign that the radio business model might not work, and now a long list of stations have been taken off the Federal Communications Commission’s (FCC) list of active radio stations.

“AM radio stations have dropped by 7% since 2015, falling from approximately 4,684 to 4,342 licensed stations by the end of 2025. This represents a loss of about 342 AM outlets over the 10-year period,” according to FCC data.

FM, which has traditionally offered stronger station signals, has suffered as well.

“This category declined slightly over both one and 10 years. There were 6,589 FM commercial stations in December, 36 fewer than a year earlier and down 112 from 2015, a 2% drop,” according to Radio World.

Luke Bouma, who founded Cord Cutters News, explained why stations are closing.

“The primary force driving these declines stems from the rapid rise of digital alternatives. Streaming music services and podcasts have captured increasing shares of listener time, particularly among younger audiences who favor on-demand, personalized content accessible via smartphones and smart devices,” he wrote.

That creates a situation where there’s not enough revenue for some local radio stations to survive.

“As consumers shift away from live, scheduled broadcasts, advertising revenue for many commercial stations has softened, making it harder to sustain operations, especially for smaller or less profitable outlets in competitive markets,” he added.

Global One Media has converted its Chapter 11 bankruptcy filing to a Chapter 7 bankruptcy liquidation.

Global One Media had a short history

Entering local radio in 2022 was a daring bet for Richard Hudson, owner of Global One Media.

Richard Hudson founded the company in 2022 with the $1 million purchase of Ruby Radio Corporation’s stations in Elko, Nevada, Radio + Television Business Report confirmed, and he later acquired Rooney Moon Broadcasting’s properties in Clovis, New Mexico, for 1.1 million.

The company filed for bankruptcy in 2024, with Newtek Small Business Finance LLC claiming it owed $2.8 million secured by Global One’s personal property. That claim went to court when Global One’s trustee objected to Newtek’s claim.

“The trustee argued that Newtek should have filed the financing statements in Delaware, Global One’s state of incorporation, not Mexico and Nevada. Although the bankruptcy court initially sided with Newtek, the trustee appealed,” law firm Troutman Pepper Locke shared on its website.

More Bankruptcy:

  • Classic comfort food chain forced into Chapter 11 bankruptcy
  • Another award-winning beer brand files for Chapter 11 bankruptcy
  • After bankruptcy, Hooters closes restaurants, fights for survival

That decision was overturned.

“On appeal, the Appellate Panel reversed the decision. They emphasized that since 2001, Revised Article 9 of the Uniform Commercial Code (UCC) requires filing financing statements at the debtor’s location, not where the collateral is located,” the law firm explained.

That cleared the way for Global One Media to move from a Chapter 11 filing to a Chapter 7 liquidation.

Global One Media Chapter 11 at a glance

  • Case No: 2:24-bk-10526
  • Court: U.S. Bankruptcy Court, District of Nevada (Las Vegas)
  • Filing Date: February 2, 2024
  • OriginalFiling: Chapter 11 (Subchapter V small business reorganization)
  • Estimated liabilities: $1 million to $10 million
  • Estimated assets: $0 to $100,000
  • Net position: Negative equity (liabilities exceed assets)
    Sources: Bankruptcy Observer, PacerMonitor, Inforuptcy
Local radio has lost listeners to podcasts and streaming.

Shutterstock

What’s next for Global One Media?

Originally, Global One Media submitted a plan to the courts, filed on Pacer Monitor, which would have kept it operating. That plan required court approval and would have been no worse than a liquidation for creditors, and perhaps better.

“To confirm the Plan, the Court must find that all creditors and equity interest holders who do not accept the Plan will receive at least as much under the Plan as such claim and equity interest holders would receive in a chapter 7 liquidation,” the company shared.

The filing showed that there are no funds available for general unsecured creditors.

“Now the company has filed with the FCC to transfer the licenses to Chapter 7 trustee Brian Shapiro with the US Bankruptcy Court District of Nevada Judge Mike Nakagawa also approving a $550,000 good-faith acquisition by William Hudson’s Aegis Media Holdings. That sale is structured with Aegis paying $300,000 for the station assets and $250,000 for two real estate parcels in New Mexico,” Radio Insights reported.

The FCC still needs to approve the sale.

Aegis Media Holdings is a Nevada-based media investment company that says it is focused on acquiring and developing media businesses that serve communities underrepresented in mainstream coverage, according to Inside Radio.

It’s unclear whether any of the stations owned by Global One Media will continue operating.

Global One Media owns Rock “Overdrive 101.5” KRMQ Clovis, Country 105.9 KSEL-FM Portales, Hot AC “Mix 107.5” KSMX-FM Clovis, and Classic Country “Cow Country” 1450 KSEL Portales in the Clovis NM market and Classic Hits “Kool 94.5” KUOL Elko, Hot AC “Mix 96.7” KHIX Carlin, Country “Big Country 103.9” KBGZ Spring Creek, Rock “Overdrive 100.5” K263BD Spring Creek/KBGZ-HD4, Classic Rock/Coyote Rock” 101.1 K266AB Elko/KBGZ-HD3, and Conservative Talk “Talk Radio 107.7” K299AN Elko/KBGZ-HD2 in Elka, according to Radio Insights.

Related: Spanish radio network files for Chapter 11 bankruptcy