Before the Tuesday announcement, the site had been down for maintenance. Then, early yesterday, the following message was posted:

“On Friday February 19th, SellaBand AG requested provisional suspension of payments (moratorium). This was granted by the Court in Amsterdam on the same day. Yesterday, Monday February 22nd, this moratorium was changed into bankruptcy, with appointment of, Mr Paul Schaink, an amsterdam lawyer, as trustee. The trustee wishes to inform the ‘Sellaband community’ that, apart from a few technicalities, the completion of a transaction with a potential buyer of the business, is to be expected soon, in order to make a fresh start, safeguarding both the rights of Believers and Artists. More news will follow shortly.

On behalf of the trustee,

Johan Vosmeijer
CEO SellaBand”

Other than that, details are pretty bare. The bankruptcy, which occurred on Monday in a Dutch court, could mean the end of the company, who since 2008 has raised three million for countless acts attempting to fund their latest album. According to the Washington Post, it could mean new life, though, especially since the company has almost broken even by raising five million in venture capital in 2008. As per what this means for acts who are in the process of recording, it could depend on the bankruptcy proceedings. As always, more details as they’re released.

According to Billboard.biz (via Prefix Magazine), the group had gotten to only 28% of its goal and had seen little more activity from December on. What’s more, a number of investors have since dropped out (about $4,000 worth), which has dropped the amount raised to $67,400. Of their 901 remaining investors, most had donated an average of $75; by contrast, the Polish power-pop group Mopi had raised about $200 per investor.

While the precise reason for the stall isn’t known for sure, Billboard points to a number of potential causes. As an already established act, Public Enemy’s fame and notoriety may be a hindrance, with even the most hardened fans questioning why the group needs any financial assistance. Marketing options within the SellaBand market may have been a problem, but one of the bigger causes may have been the amount raised and the gifts offered to investors. At $250,000, the total amount is much higher than targets set by others; of the 43 bands or acts who have reached their goal, 35 were under $50,000, with most being between $10,000-$20,000, and in terms of reimbursement, fans’ options were limited. A donation of $25 netted just the CD, with the more expensive options ($100 and $250) adding little more in the way of desirable returns (unless you’d like a shirt that basically went for $150). And for most fans, the $10,000 option is a little out of their pay grade.

We’ll have further updates if the album does ever get back on track.

The Amsterdam-based web company SellaBand announced (via LiveDaily) that it will be working with the band in order to raise the $250,000 to release the followup to 2007′s How You Sell Soul to a Soulless People Who Sold Their Soul?. SellaBand works by offering shares (called “parts”) that fans (“Believers”) buy in exchange for incentives. The band is offering 10,000 parts for $25 and incentives include an exclusive numbered CD in Digipack for one share bought to autographed CDs, t-shirts, a three-year unlimited backstage pass, and even a producer credit for more purchased parts.

Five lucky Believers can purchase 400 parts for a cool $10,000 and will be entitled to all of the above as well a visit to the studio during the recording process. Since the purchasing period for the PE album owned on October 6th, 400 Believers have already invested $20,000 as of the morning of October 8th.

The yet-to-be-titled album is expected for a 2010 release.