Following rumours of staff cuts and reports they were shutting down, All Def Digital are taking alternative steps to bankruptcy.
All Def Digital, the entertainment brand founded by Def Jam co-founder Russell Simmons, are reportedly filing for insolvency. They are filing for an Assignment for the Benefit of Creditors (ABC).
An alternative to bankruptcy, this allows the proceeds made from the sale of an insolvent company or its liquidated assets to be paid to the creditors.
The company’s troubles come after rumours earlier this month suggested the company was shutting down and cutting staff. All Def Digital’s current CEO and President Chris Blackwell denied the rumours, saying the company was “reorganising in advance of a strategic deal”.
The failing business of All Def Digital has left many freelance creatives without payment in their project. According to freelancers who have reached out, they are owed up to $50,00 in unpaid invoices.
Speaking to Billboard, one videographer told that they are owed over $3000 in payments for their work shooting a video series. The series was cancelled out of nowhere and everyone working on it was told the series would “go dark” for three weeks. They cancelled the series in May and the videographer has said he hasn’t heard back since.
According to a former executive from the company they are fully intending to pay out any owed creatives and freelancers. Business bankruptcy attorney, Robert Marticello said “ABCs usually do not involve a continuation of the business. That is the concern with creditors — you don’t know that the person or company that owes you money has gone through an ABC until it’s really too late to take any action.”