Just the other day, we told you that Public Enemy‘s relationship with Dutch crowdfunding group SellaBand wasn’t doing so hot. As it turns out, it may not be any fault of the group or its fans. In fact, the company may just be another victim of the current economic climate as the start-up has filed for bankruptcy.
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,
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.