It Is ‘Unlikely’ That PledgeMusic Artists and Creditors Will Be Paid, Receiver Says
Art Business

It Is ‘Unlikely’ That PledgeMusic Artists and Creditors Will Be Paid, Receiver Says

PledgeMusic , the direct-to-fan marketplace that went out of business earlier this year , was more than $7.4 million in debt when it entered liquidation, and its receiver says it is “unlikely” that artists and others owed money by the company will be paid, according to a report from the bank-appointed receiver. “I do not anticipate that I will need to contact you again because there is unlikely to be a payment to creditors in this case,” concludes the report from official receiver S. Rose, dated Oct. 21, 2019 and obtained by Variety. “If that changes I will contact you.” While many of the affected artists — who found themselves on the hook for thousands of dollars when Pledge began failing to make payments last year — have threatened legal action against the compan y, that may be a slippery slope: In the report, the company’s board says its legal advisors “indicated that Pledge monies were not trust monies,” which means the money paid by fans belonged to Pledge, not the artists — even though the premise of the company was for it to be a conduit through which fans would pay artists for everything from albums and CDs […]

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