Nobody Wants to Buy Music Dealers; Grueling Liquidation Process Begins

Music Dealers

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).

4 Responses

  1. The Captain

    Haha – nobody wants this worthless piece of crap company.

    This Eric Sheinkop needs to be called out for what he is – a total scumbag user/waster of other peoples money and lives. Anybody who becomes involved with this shyster and his new hustle should steer clear right away.

    • For real.

      From what I hear the dude wasn’t even in the office for the last year. Just hitting the touring circuit and hawking his books. Straight grifter

  2. Musicservices4less

    Just going with the headline of this article, in this type of situation, when there are no buyers, it usually means there is nothing of real value to sell. And it seems that is the situation here. It is too bad for those artists that put their hard work into their music and gave it a shot with this company.
    Probably the next shoe to drop will be a few lawsuits from artists who did not get paid. Those lawsuits might be directed against the end users i.e., HBO, Cinemax, etc. While it is likely those claims will fail, they may bring some settlements. Who knows?
    But in another sense, this is an example of what happens when you have the mindset that technology can do everything involving the creative arts. It can’t. There is so much more to the business of music than most people realize.
    There is an old saying, “The deal ain’t done until you receive the check . . .and the check clears!”


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