Music startup Crowdmix is going into administration
Staff have told Business Insider that they still haven't been paid their June wages, which follows a delay in payment of May salaries.
The company had been waiting to try to secure emergency funding over the weekend in order to continue operating, but that deal has seemingly fallen through.
Staff members were called into a meeting at Crowdmix's London office at 2.30pm today where they were told that the company will be winding down after it failed to pay its vendors.
Business Insider understands that Crowdmix intends to sell itself as a going concern, but it may only be able to sell its intellectual property.
Crowdmix, founded in London in 2014 by Ian Roberts and Gareth Ingham, had developed a music social network that lets fans talk about the bands they like, as well as stream music through the app. The service only launched an invite-only version in May 2016, despite having over 160 employees. It has raised over £14 million in venture capital funding.
Crowdmix CEO Ian Roberts left the company in June, and that news followed layoffs that affected 8% of staff. But despite those limited cost-cutting measures, Crowdmix was still paying for plush offices in London and Los Angeles.
The largest investor in Crowdmix, Business Insider has learned, was billionaire property tycoon Nick Candy, one half of the Candy brothers. He gave the company £6.5 million, according to documents filed with Companies House.