PledgeMusic has revealed that it's heading for bankruptcy after plans to sell the company fell apart.
PledgeMusic co-founder Benji Rogers confirmed that the crowdfunding platform will enter administration (the equivalent of bankruptcy) in a letter sent to artists and in a separate post on Medium.
"I am sorry to say that the sale process that I have been speaking to you about over these last weeks and months for PledgeMusic was unsuccessful and that the buyers have withdrawn," Rogers wrote in the letter [via Variety].
The letter continued: "Any funds received for the assets of Pledge will be distributed to all of the creditors involved. This will include all of the artists who are owed money. This was the last thing I wanted, and I am holding out hope of a decent recovery for all of you."
Last June, it was revealed that PledgeMusic was struggling to pay artists, with the company advising artists to "suspend" any funding campaigns this past February.
Rogers, who left his post as CEO of PledgeMusic in 2016, explained in his Medium post how he returned to the company as a volunteer in hopes of salvaging the business. However, he was "sad to report that this effort has not met with success."
"I cannot begin to appreciate how all of you affected artists are feeling about this and I am deeply sorry for what you have been through," Rogers wrote. "I ask all of the fans to please understand the awful and near impossible situation that this has put the artists that you love and supported in, and as such I ask you to bear with them as they do their best to make any obligations to you right. I am also sorry for all of the labels, fulfillment companies and other vendors affected."
While no details have been given as to what led to PledgeMusic's imminent bankruptcy, a former employee told Billboard in January that the company invested artists' campaign funds back into the company.
PledgeMusic co-founder Benji Rogers confirmed that the crowdfunding platform will enter administration (the equivalent of bankruptcy) in a letter sent to artists and in a separate post on Medium.
"I am sorry to say that the sale process that I have been speaking to you about over these last weeks and months for PledgeMusic was unsuccessful and that the buyers have withdrawn," Rogers wrote in the letter [via Variety].
The letter continued: "Any funds received for the assets of Pledge will be distributed to all of the creditors involved. This will include all of the artists who are owed money. This was the last thing I wanted, and I am holding out hope of a decent recovery for all of you."
Last June, it was revealed that PledgeMusic was struggling to pay artists, with the company advising artists to "suspend" any funding campaigns this past February.
Rogers, who left his post as CEO of PledgeMusic in 2016, explained in his Medium post how he returned to the company as a volunteer in hopes of salvaging the business. However, he was "sad to report that this effort has not met with success."
"I cannot begin to appreciate how all of you affected artists are feeling about this and I am deeply sorry for what you have been through," Rogers wrote. "I ask all of the fans to please understand the awful and near impossible situation that this has put the artists that you love and supported in, and as such I ask you to bear with them as they do their best to make any obligations to you right. I am also sorry for all of the labels, fulfillment companies and other vendors affected."
While no details have been given as to what led to PledgeMusic's imminent bankruptcy, a former employee told Billboard in January that the company invested artists' campaign funds back into the company.