The monetary issues of Correct Group, the corporate previously often known as Utopia Music, continued this week as a court docket in Switzerland initiated chapter proceedings towards the corporate over an unpaid authorized invoice.
Correct says the chapter case was introduced by MME Authorized, a regulation agency to which the music firm owed CHF 23,000 (approx. USD $27,000).
The music firm says it was unaware that Zug-based MME Authorized had launched authorized proceedings towards it. Consequently, it missed a court docket listening to on Tuesday, triggering the court docket’s chapter continuing.
In a press release issued on Thursday (September 26), Correct stated it had settled the debt to MME Authorized in full and plans to launch an enchantment to halt the proceedings.
“We’re upset that chapter proceedings have been triggered. Our firm was sadly unaware that authorized proceedings over a minor debt had been going down, and consequently we weren’t represented on the court docket listening to,” a Correct spokesperson stated in a press release.
“Our debt has now been settled and we’re in fact interesting this determination.”
Swiss-born Correct Group has skilled a sequence of monetary crises over the previous few years, after a high-profile and aggressive acquisition spree started to take a toll on the corporate.
In 2023, there have been experiences that firm employees in Sweden had been going unpaid.
Earlier this yr, a US court docket ordered the corporate to pay $1.9 million to the previous house owners of Lyric Monetary, a music financing platform that Correct (on the time referred to as Utopia) had acquired in 2021. An arbitration panel discovered that Correct had did not make the final installment fee on the acquisition.
“Latest constructive developments within the enterprise have positioned us on monitor to near-term money movement positivity, with clear prospects of profitability by 2025.”
Correct Group
The monetary issues observe an aggressive buying spree that noticed Utopia purchase such companies as Quincy Jones-backed Musimap, UK warehouse and achievement agency Cinram Novum, writer Sentric Music Group, Absolute Label Providers and Absolute Rights Administration, and Correct Music Group, the UK-based firm after which Utopia renamed itself.
However indicators of monetary hassle on the firm weren’t lengthy in coming. Beginning in late 2022, the corporate initiated a sequence of mass layoffs, and rapidly started unloading lots of the belongings it had amassed, together with Sentric, Absolute, and ROSTR.
Full Music Replace experiences that the missed court docket date this week was the results of understaffing on the firm, following the layoffs.
Amid the hearth sale, the corporate has repeatedly requested its shareholders for extra money injections. Nonetheless, the corporate says it’s heading in the right direction and expects to succeed in profitability subsequent yr.
“Latest constructive developments within the enterprise have positioned us on monitor to near-term money movement positivity, with clear prospects of profitability by 2025, so we count on to succeed in a positive consequence,” a spokesperson stated on Thursday.Music Enterprise Worldwide
