Music Dealers was all about synchronization. Now, it’s all about liquidation.
The imploding nightmare around Music Dealers is now getting worse, with a last-ditch liquidation sale now happening. That follows a brief period in which Music Dealers and its principal, Eric Sheinkop, appeared to holding out for a last-minute buyer. That knight in shining armor has apparently failed to materialize, leaving the liquidation sell-off as a next grueling step.
As first reported on Digital Music News, Music Dealers abruptly shut its doors in late July, with a number of accounts midstream. An unspecified number of artists and labels were left unpaid, with synch-focused company Songfreedom offering to inherit and rescue some of those lingering accounts.
Meanwhile, it looks like Sheinkop, with co-conspirator Judith Snyder, are now moving onto another venture. Synder’s role in the Music Dealers meltdown remains suspect: a longtime Coca-Cola executive, Snyder attempted to distance herself from any involvement in the company. An earlier video interview at a Music Dealers event features a glowing endorsement by Snyder, though the loss of Coca-Cola as a client is rumored to be the root cause of the Music Dealers meltdown (Snyder offered to be interviewed by DMN, but declined after we informed her the conversation would be recorded for accuracy).
All of which brings us back to the current sad state of affairs. In an email leaked to Digital Music News this week, a top-level summary of available assets is listed, with bits-and-pieces essentially being auctioned off for any reasonable price. “The Trustee-Assignee will evaluate all indications of interest and offers received and determine the best manner in which to lot and sell the assets,” the letter states, while insisting on NDA signatures for serious buyers.
Unfortunately, that probably sucks for artists waiting to get paid. We’re not clear how many payments were left in the lurch, though paying artists doesn’t seem to The liquidation is being offered by High Ridge Partners, which is also based in Chicago.
Here’s the email that’s being sent to potential asset buyers.
Now, here’s where this gets a little tricky. In the more detailed ‘Summary of Available Assets,’ High Ridge specifically notes that Music Dealers is still trying to get paid by former partners like MTV Networks. INgrooves, partly owned by Universal Music Group, is assisting in the process to both identify and collect the unpaid royalties, though no mention of payouts to stiffed artists or labels is mentioned.
Here’s the complete document. Any further inquiries, hit up High Ridge Partners or INgrooves.
Top image: MIKI Yoshihito, licensed under Creative Commons Attribution 2.0 Generic (CC by 2.0).