Modular Records $5.9 million in Debt

Modular Records $5.9 million in Debt
Despite having signed big-time artists like Wolfmother, Cut Copy, Yeah Yeah Yeahs and Robyn, it seems Australian label Modular has run into hard times. And by that we mean it's $5.9 million in debt. According to company accounts, this is how far in the red the Sydney-based record label was by the end of 2007, the Daily Telegraph has reported, with Modular losing nearly $1.8 million last year and another $2.6 million in 2006.

And considering the bands on the Aussie imprint, these financial woes come as a bit of a shock. Modular has released albums by artists like the Avalanches, the Black Keys, Soulwax, Klaxons, the Presets, MSTRKRFT and Jack Johnson, as well as the bands listed above. Also, of all these Modular artists, Wolfmother’s self-titled debut went five times platinum in Australia (over 350,000 copies sold) and gold in Canada, the U.S. and the UK.

In the financial report, which was filed earlier this month at the request of corporate watchdog ASIC, it also shows that $8 million was paid by Modular to suppliers and another $8.7 million was given to staff, the Daily Telegraph reported.

Yet despite all this money trouble, label head Steve Pavlovic sounded quite optimistic about everything, telling the newspaper he expected the label’s 2008 releases to help swing things around. "You'll see it start to rise now as the records we've got out start to sell," he said, adding that the business simply had "swings and roundabouts.”

Well, for Modular’s sake, it seems like Wolfmother and the Avalanches better get it together soon and drop those sophomore albums.

This just in, maybe the Avalanches are well on their way.