A prospective sale of PledgeMusic has fallen through, and the company will enter administration, the UK equivalent of bankruptcy, sources tell Hypebot.
UK based corporate advisory FRP will be nominated to administer a court directed sale of all assets, which would be used to pay artists, merchant bank Sword, Rowe & Company and other creditors.
PledgeMusic recently sold subsidiary Noisetrade to Paste Media for an undisclosed sum.
The company suspended all crowdfunding campaigns on its site on February 4th, leaving hundreds of musicians owed between between $1 and $3 million. How much money will now go to pay off artists is dependent on the sales of the assets, with any secured creditors at least partially paid before any payments artists.
More on this story as it develops.
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