San Jose Symphony goes out of business

The San Jose Symphony, which ceased to present concerts earlier this year due to longtime financial difficulties, has filed Chapter 7 bankruptcy papers, bringing an end to the 123-year-old institution.

Symphony interim administrator Tim Beswick confirmed Tuesday that the troubled orchestra filed the papers Monday, ending speculation that the company might opt to file for Chapter 11 bankruptcy, a move which would have allowed for a reorganization, as well as the possibility of saving its music library from liquidation.

In early June, the orchestra, saddled with $3 million in debt and only $300,000 in assets, announced that it would go dark for six to 18 months, but at that time its leaders had planned to reorganize the institution.

Jay Harris, the former publisher of the San Jose Mercury News who has served as interim symphony board chairman since last December, was traveling and could not be reached for comment Tuesday. But earlier he told the Mercury News that by October it had become clear that liquidation under Chapter 7 was inevitable because the orchestra had begun to lose its credibility with key donors.

“I’m very sad that it ended the way it did,” Harris said. “The community has lost an institution that has given a lot to many generations.” Harris blamed the symphony’s demise on “inconsistent leadership” and bad decisions on the part of the board of directors, such as using capital funds for operations.

In October, with the fate of San Jose Symphony still undecided, Andrew Bales, executive director of Ballet San Jose Silicon Valley, announced the formation of a new orchestra, Symphony San Jose Silicon Valley, to fill the void left when the San Jose Symphony decided to suspend performances. The new orchestra, which performed its first concert in October, operates under the same management umbrella as the dance company. Many of the musicians in the new orchestra have accompanied the ballet performances and also performed with San Jose Symphony, which was a part-time employer.

“Effectively what happened yesterday has no real impact on what we’re doing,” Bales said Tuesday. “It was already a done deal; this was just the filing of a piece of paper. We’re moving ahead. We’re sad for all that’s happened, but we’re effectively not part of it at all.”