PledgeMusic Is Headed for Bankruptcy, Says Crowdfunding Platform's Co-Founder

PledgeMusic Faces Issues Paying Artists

U.K. based company PledgeMusic is reportedly going into administration (the U.K. equivalent of bankruptcy). The founders of the company tried to sell it to a new buyer, but the sale fell through making bankruptcy imminent. The company also allegedly struggled to pay artists who crowdfunded the program This means that some artists can't send merchandise that they had promised their fans. Because they are going into administration, PledgeMusic still has to pay their creditors. The problem is that they do not have enough money to pay creditors and artists both. The co-founder released a statement saying that artists would be payed and should register as creditors to ensure that but had no specific information on how to do so. The co-founder did ask for a 3-month grace period for the payments though.

This whole situation is bad for the music industry. Music should be a leading force in business, but PledgeMusic became a laughing stock. This shows that if a business gets into controversy over not paying people who need payed, it will ultimately lead to their downfall. PledgeMusic should have come out with a stronger business model in order to pay the artists and everyone else fairly and consistently. Although their downfall somewhat came from controversy, it is also

natural for some companies to just not work out.