After RPM Distribution — Canada's largest independent vinyl distributor — unexpectedly ceased operations last month, the company's bankruptcy details have been detailed, revealing that the company owes millions to Canadian record labels.
As Billboard reports, a sworn statement filed by RPM president Paul Herzog in Ontario court reveals the company owes the $8.9 million in liabilities — the majority of which is to Universal Music Canada. The distributor filed for bankruptcy two weeks after shutting down back in early January.
Billboard notes that of the $8,908,796.81 owed, the majority is owed to Canada's major labels. Universal Music Canada is owed approximately $5.4 million, while $2 million is owed to Sony Music Canada and $800,000 to Warner Music Canada.
Three independent distributors are also owed a sizeable chunk of change: Outside Music is owed $127,000; F.A.B Distribution is owed $98,000 and Distribution Select is owed $62,000.
RPM's total assets are listed as $4,454,599.21, which includes $2,585,000 in inventory, $1,412,200 in cash, $138,732.40 in property, $50,000 in machinery, equipment and plant, and $55,000 for vehicles.
RPM was based in Concord, ON, and was a supplier for around 400 independent music retailers. In early January, Herzog sent an email to clients announcing the closure.
"I regret to inform you that RPM Distribution will be closing all operations effective immediately," the email read. "No orders will be processed moving forward and any existing orders in the system will be cancelled. All returns on site will be processed and credits will be provided. New returns will not be issued or accepted. Limited staff will be here to facilitate and oversee accounts payable/receivables and supplier returns."
As Billboard reports, a sworn statement filed by RPM president Paul Herzog in Ontario court reveals the company owes the $8.9 million in liabilities — the majority of which is to Universal Music Canada. The distributor filed for bankruptcy two weeks after shutting down back in early January.
Billboard notes that of the $8,908,796.81 owed, the majority is owed to Canada's major labels. Universal Music Canada is owed approximately $5.4 million, while $2 million is owed to Sony Music Canada and $800,000 to Warner Music Canada.
Three independent distributors are also owed a sizeable chunk of change: Outside Music is owed $127,000; F.A.B Distribution is owed $98,000 and Distribution Select is owed $62,000.
RPM's total assets are listed as $4,454,599.21, which includes $2,585,000 in inventory, $1,412,200 in cash, $138,732.40 in property, $50,000 in machinery, equipment and plant, and $55,000 for vehicles.
RPM was based in Concord, ON, and was a supplier for around 400 independent music retailers. In early January, Herzog sent an email to clients announcing the closure.
"I regret to inform you that RPM Distribution will be closing all operations effective immediately," the email read. "No orders will be processed moving forward and any existing orders in the system will be cancelled. All returns on site will be processed and credits will be provided. New returns will not be issued or accepted. Limited staff will be here to facilitate and oversee accounts payable/receivables and supplier returns."
