7digital at risk of bankruptcy

7digital, the B2B music provider, may be facing bankruptcy this summer. The company’s leadership did not pass a resolution this week during its general meeting, which means it needs to raise $5.5 million by July 31. If it is unable to secure that funding, it is “highly likely that the Company would need to be placed into administration.”

According to Hypebot, eMusic has offered 7digital $1.6 million of that total. 7digital partnered with eMusic to power the platform when it relaunched in 2016. A spokesperson said that eMusic CEO Tamir Koch would embark on a mass market distribution project based on 7digital’s blockchain platform if the company can avoid administration. But eMusic has faced its own challenges of late, including some labels pulling their catalogs last fall with claims of non-payment.