It’s been circling the drain for awhile.
And now, it’s happening. PledgeMusic, the direct-to-fan crowdfunding platform for musicians is declaring bankruptcy.
The site has been withholding donations pledged to musicians for months.
Co-founder Benji Rogers, in a letter published yesterday, announced that the efforts to sell the company have failed and that it plans to use the donated money to pay off the company’s creditors rather than be given to the targeted musicians. This will result in donors not receiving the perks advertised. Musicians will possibly be able to list as creditors in the liquidation proceedings.
Billboard reports that:” No details have been given about causes leading to PledgeMusic’s financial insolvency, but a former employee told Billboard in January that artists’ crowdfunded money had gone to fund ongoing operations instead of holding it “on account.”” That could result in criminal liability for company management.