After divesting a number of just lately acquired companies (Absolute and ROSTR amongst them) and shedding quite a few staff, Utopia Music has reportedly delayed paying sure crew members, and two of its subsidiaries look to have filed for chapter.
These newest less-than-ideal developments pertaining to Utopia Music entered the media highlight in a pair of reviews from Full Music Replace, after the Swiss music fintech every week again revealed plans to shut two R&D workplaces (one in Finland, the opposite within the UK).
In an internally circulated memo that was shared with Digital Music Information, Utopia co-founder and CEO Mattias Hjelmstedt described the closures as “a obligatory step to comprehend our long-term imaginative and prescient of Honest Pay for Each Play” – whereas opting towards mentioning the initially highlighted bankruptcies. Equally, a Utopia consultant in a prolonged assertion to DMN didn’t elaborate upon the exact destiny of the analysis and growth operations at hand.
In response to the aforesaid reviews, nevertheless, the UK R&D division has been put into liquidation, and the hub in Finland has filed for chapter. When inquiring about their due pay, staff on the former division have been reportedly informed to talk with the liquidators. On the time of this writing, none of those undoubtedly ticked-off professionals appeared to have taken to LinkedIn to debate their current experiences with Utopia.
In the meantime, completely different Utopia staff but – referring particularly to those that are nonetheless a part of the troubled firm however excepting the groups of Correct Music and Utopia Distribution Providers – are ready to obtain their owed paychecks, per the above-noted outlet.
Although it’s definitely little comfort to the employees who haven’t been compensated for his or her efforts, that is in keeping with the reviews not the primary time that Utopia’s delayed making wage funds.
Moreover, third-party distributors are likewise awaiting the achievement of excellent invoices from Utopia, the report reveals – with the latter entity having reportedly responded to related inquiries by speaking that additional funding can be required to honor the related contracts.
Addressing the alleged failure to pay staff, a Utopia spokesperson acknowledged that “there have been some hiccups in inside processes as a result of our transformation efforts,” continuing to state that “all staff are within the technique of being paid.”
And when requested whether or not the overarching Utopia Music AG would have the ability to meet its monetary obligations in the long run, the corporate considerably noncommittally relayed that “a part of the explanation that the R&D entities within the UK and Finland have been closed down was to safeguard our international operations.”
Value mentioning in conclusion is that an April report recommended Utopia Music, which had beforehand bought off Sentric to Consider in a $51 million deal, was battling allegations of huge tax money owed. Plus, a minimum of one firm is litigating towards Utopia over an acquisition deal that evidently fell by way of.