The company was previously accused of failing to deliver payments.
Music crowdfunding platform PledgeMusic is on the verge of bankruptcy after plans to sell the company fell through.
The company, which was previously accused of failing to deliver payments to successful artists, announced the news in a letter from co-founder Benji Rogers.
“I am sorry to say that the sale process that I have been speaking to you about over these last weeks and months for PledgeMusic was unsuccessful and that the buyers have withdrawn,” said Rogers in the letter.
The unfulfilled payments meant that musicians who crowdfunded on the platform were unable to deliver the rewards they had promised to fans who pledged money. The funds will now be used to pay off the firm’s creditors.
“The company will go into administration at some point this week or early next which means that any funds received for the assets of Pledge will be distributed to all of the creditors involved,” Rogers explained. “This will include all of the artists who are owed money.”
Rogers also told artists that he is in the process of finding out whether they can themselves register as creditors in order to receive the money they’re owed.
This comes after artists first confirmed that they were not being paid earlier this year.
Since its formation in 2009, the website has offered a platform for artists to receive funding from their fans for upcoming projects. Artists including Weezer, Sum 41 and Slash have all successfully launched albums using the platform in the past.
The site said in January: “We deeply regret that recently we have not lived up to the high standards to which PledgeMusic has always held itself. We acknowledge that many artists have and continue to experience payment delays. These delays to artists are unacceptable—not only to them, but to us.”