THOUSANDS OF fans and artistes face losing money as crowdfunding platform PledgeMusic is on the brink of calling in administrators.
The company was set up in 2009 to help musicians bypass traditional funding sources such as record labels, and appeal directly to their fans to raise money rfor ecording and other projects.
But after months of delayed payments to artistes, it appears to have run out of money.
Former CEO Benji Rogers, who returned to the beleaguered company in January to help turn it around and find a buyer, says it will shortly be heading into administration.
Administrator FRP Advisory says it “is meeting with the directors of PledgeMusic to undertake a review of the company and discuss restructuring options for the business. FRP Advisory has not yet been appointed as administrators.”
UK Music CEO Michael Dugher has called on the on Small Business and Consumer minister Kelly Tolhurst to refer the matter to the Competition and Markets Authority (CMA).
In a statement, Rogers says, “I cannot begin to appreciate how all of you affected artistes are feeling about this and I am deeply sorry for what you have been through.” To those who invested, he says, “I ask all of the fans to please understand the awful and near impossible situation that this has put the artistes that you love and supported in.”
In a decade of operation, PledgeMusic worked with more than 45,000 artistes including, The Enemy, Stiff Little Fingers, and The Libertines. In 2014, online publication Digital Music News estimated that the platform had raised around $32 million (£24.63m) at that point.