PledgeMusic announced it would suspend accepting contributions to its active crowdfunding and presale campaigns on Wednesday (Feb. 6) until further notice.
In an email sent to its artist community, the direct-to-fan service said it decided the action would be “appropriate” in light of a statement last week asking for “patience” and “breathing space” as it explores partnerships and acquisitions. The company has had problems paying artists over the past year, with the issue coming to a head over the last month. Based on Billboard‘s reporting, acts are owed anything from $50-$100,000 earned from fans’ contributions to campaigns on the service.
PledgeMusic has not responded to Billboard‘s direct questions and said in a statement it was bound by “commercial sensitivities” that prevented it from revealing further details of its partnership and acquisition conversations. It has told artists outstanding payments would be brought up to date within the next 90 days.
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“We are working around the clock to resolve the issues at hand and will come back to you as soon as we can with an update,” the statement continued.
“We are deeply sorry for any difficulties that this brings and can assure you that we are doing everything in our power to get things back on track.”