Modular’s debt, & a debt-making tee
July 29, 2008 by chimaera
Just saw this news via the Australian Daily Telegraph:
RECORD label Modular has run up millions of dollars in losses despite having big-selling rockers Wolfmother on its roster.
Company accounts show the Sydney-based label had accumulated losses of $5.9 million by the end of 2007.
The report revealed Modular lost nearly $1.8 million last year and another $2.6 million in 2006.
Label boss Steve Pavlovic said he expected the label’s heavy investment in talent to pay off this year.
Modular’s roster includes Wolfmother, whose self-titled debut album was accredited five times platinum by recording industry peak body ARIA last year for wholesale sales of 350,000 units.
Other artists on Modular’s roster include chart-topping dance acts Muscles, the Presets and Cut Copy, New York art rock band the Yeah Yeah Yeahs and singer-songwriter Jack Johnson.
The financial report was filed earlier this month at the request of corporate watchdog ASIC.
It shows 2007 receipts from customers of more than $8 million were exceeded by payments to suppliers and employees of nearly $8.7 million.
Mr Pavlovic said the business had “swings and roundabouts”.
“You’ll see it start to rise now as the records we’ve got out start to sell,” he said.
While I can’t see that it has anything to do with the delayed album, my mind can’t help but wonder. Maybe they don’t have the cash to promote like they want to?
Unrelated, but I couldn’t help but notice this weird mannequin on Modular’s store … the tee is yours for a bargain AU$80 (that’s USD$75 nowadays). Are these people crazy?