7digital’s future is on the line as it needs to raise a load of additional funds as July approaches on the brink of administration.
B2B music service 7digital is on a shaky precipice that requires some large funding to keep it afloat. The company’s latest financial filing states: “The Company currently believe that it still needs to raise Additional Funds of at least £4.5 million by 31st of July 2019, failing which it is highly likely that the Company would need to be placed into administration.”
The announcement follows 7digital’s warning that they had experienced a “significant disruption” to business in the first half of 2019. Their board had already said they expect revenues to be “significantly behind the equivalent period in the prior year” earlier this month.
eMusic CEO Tamir Koch is set to join 7digital’s board following a £1.3 million investment from companies including Magic Investments and Shmuel Koch Holdings. The investment came earlier this month as a debt-for-equity swap in the already troubled music company.
Tamir Koch and eMusic have expressed their various plans for the service moving forward, depending on the ongoing situation that follows their funding due date next month.