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AccuRadio has followed in the footsteps of iHeartRadio and Audacy through seekingChapter 11 bankruptcy protection.
Company founder and CEO Kurt Hanson confirmed Wednesday's bankruptcy filing was the result of a failed legal settlement with rights organization SoundExchange.
Last year, SoundExchange initiated legal action against AccuRadio, based in Chicago, over unpaid royalties due to artists and record labels.
Hanson stated in a release, 'For nearly 25 years, AccuRadio has developed a distinctive and cherished music streaming service, all while dealing with escalating royalty fees that indicate the current system might be unfairly biased against smaller and medium-sized broadcasters, possibly without intending to do so.'
Currently, the radio platform owes over $10 million to the nonprofit organization. The Chicago Tribune reported.
The firm likewise has debts of approximately $200,000 to both ASCAP (American Society of Composers, Authors, and Publishers) and BMI (Broadcast Music Incorporated).
AccuRadio, recognized as one of the first internet radio stations, offers music channels across more than 60 genres, featuring specialized playlists for artists like Taylor Swift, The Beatles, and Adele.
It attracts over one million monthly listeners.
AccuRadio and SoundExchange have maintained an ongoing relationship ever since the entity was established in 2003.
Over the years, SoundExchange has collected more than $13.5 million in royalties, however, the lawsuit alleges that AccuRadio halted these payments starting in 2018.
Even though a payment agreement was established in 2020, SoundExchange alleged that AccuRadio did not adhere to it, leading to legal action being filed the previous year.
The pair clashed over settlements, but these eventually came to nothing.
'Hanson stated that they were profoundly let down by their inability to achieve a negotiated agreement.'
Moreover, AccuRadio restarted full current payments to SoundExchange several months back and has continued to stay up-to-date with all ongoing responsibilities.
The company’s filing for bankruptcy protection mirrored the filings made by iHeartRadio’s parent company, iHeartMedia, and Audacy in 2018 and 2024 respectively.
Following their exit from bankruptcy, both companies managed to recover, and Hanson thinks AccuRadio will follow suit.
'Hanson clarified that revenues have been steadily increasing, and they have achieved profitability.'
'The process of filing was challenging, however, we trust that AccuRadio will come out stronger, more resilient, and more capable of serving our dedicated listeners and the artists we support.'
Wiseova has contacted AccuRadio seeking comments regarding the bankruptcy filing.
It is among numerous firms that have declared bankruptcy this year, encompassing several restaurants and quick-service eateries.
Several other companies have also filed for bankruptcy this year.
Earlier this week, the celebrity hangout spot Planta has filed for Chapter 11 bankruptcy. .
Hooters declared bankruptcy in March , and Bar Louie suddenly shut down restaurants prior to filing for bankruptcy. the second time in five years .
Other franchises facing difficulties this year encompass At The Border Mexican Grill & Cantina and family-favorite restaurant Bertucci's .
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