The monetary issues of Correct Group, the corporate previously often called Utopia Music, continued this week as a courtroom in Switzerland initiated chapter proceedings in opposition to the corporate over an unpaid authorized invoice.
Correct says the chapter case was introduced by MME Authorized, a legislation 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 in opposition to it. In consequence, it missed a courtroom listening to on Tuesday, triggering the courtroom’s chapter continuing.
In an announcement issued on Thursday (September 26), Correct mentioned 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 in consequence we weren’t represented on the courtroom listening to,” a Correct spokesperson mentioned in an announcement.
“Our debt has now been settled and we’re after all interesting this choice.”
Swiss-born Correct Group has skilled a collection of economic 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 stories that firm employees in Sweden had been going unpaid.
Earlier this yr, a US courtroom ordered the corporate to pay $1.9 million to the previous homeowners of Lyric Monetary, a music financing platform that Correct (on the time known as Utopia) had acquired in 2021. An arbitration panel discovered that Correct had didn’t make the final installment fee on the acquisition.
“Current optimistic developments within the enterprise have positioned us on monitor to near-term money circulate positivity, with clear prospects of profitability by 2025.”
Correct Group
The monetary issues comply with an aggressive procuring spree that noticed Utopia purchase such corporations as Quincy Jones-backed Musimap, UK warehouse and success 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 economic hassle on the firm weren’t lengthy in coming. Beginning in late 2022, the corporate initiated a collection of mass layoffs, and shortly started unloading lots of the property it had amassed, together with Sentric, Absolute, and ROSTR.
Full Music Replace stories that the missed courtroom date this week was the results of understaffing on the firm, following the layoffs.
Amid the fireplace 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 achieve profitability subsequent yr.
“Current optimistic developments within the enterprise have positioned us on monitor to near-term money circulate positivity, with clear prospects of profitability by 2025, so we count on to achieve a positive end result,” a spokesperson mentioned on Thursday.Music Enterprise Worldwide
