Sellaband, a Dutch Web site that allows bands to seek investments from fans, filed for bankruptcy in an Amsterdam court Feb. 22.
The site posted a statement the following day indicating a receiver has been appointed, although the company said it expects to find a buyer to take it on as a going concern.
Official receiver Paul Schaink has indicated that, apart from a few technicalities, he’s near to completing the sale of the business.
Digtal Music News is questioning how easy it will be to sell a distressed company with a highly experimental business model.
The site has begun notifying visitors that it’s been taken down for maintenance.
Sellaband launched in August 2006 with a $5 million investment from PrimeTechnology Innovation. Prior to launching Sellaband, chief exec Johan Vossmeijer was an executive with Sony Music.
At press time, it wasn’t possible to ascertain what would happen to funds being held in escrow for fan investors or for artists like Public Enemy, which were using the platform to raise funds for a new album.
There were signs two weeks ago that all wasn’t well at Sellaband, as Public Enemy’s fan-funded album failed to reach its $250,000 goal and was losing more investors than it was winning.