Hassle in Utopia? As agency offloads Sentric to Imagine, tax debt looms and workers go unpaid in Sweden
Is hassle brewing at Utopia?
Right now (March 30), MBW broke the information that the corporate had bought music publishing platform Sentric to Imagine – only one yr after Sentric was itself acquired by Utopia.
The sale of Sentric marks the second time this yr that Utopia has offloaded an organization that it beforehand acquired throughout the previous 18 months: final month, Utopia bought music trade listing/knowledge platform, ROSTR, again to its founders Mark Williamson and Adam Watson.
In the meantime, Utopia is reportedly being sued by US music expertise firm SourceAudio, with the latter agency accusing the previous of reneging on an agreed acquisition deal.
Including to this story: on the prime of 2023, we realized that Utopia was parting methods with long-time CEO Markku Mäkeläinen, following a spherical of layoffs in November that have been thought to have affected 20% of the corporate.
Now, in line with a bombshell report from Scandinavian information outlet Breakit, some Utopia workers have lately gone unpaid, whereas a big tax debt – additionally reportedly unpaid – looms over the corporate in Sweden.
What’s extra, MBW is listening to rumors that Utopia is presently contemplating a fast sale for 2 extra of its UK-based latest acquisitions: Correct and Cinram.
Breakit studies that Utopia’s Swedish firm Utopia R&D Tech owes over 8 million SEK (approx $768,400) to the Kronofogden, the Swedish Authority accountable for debt assortment and the enforcement of courtroom orders within the nation (i.e. the bailiff).
The report provides (translated from Swedish) that “there are a complete of 19 cost orders [to Utopia from] the Bailiff, calls for which haven’t but develop into a longtime debt. These necessities differ in measurement from just a few thousand kroner as much as tens of millions”.
Moreover, three ‘chapter purposes’ have reportedly been directed at Utopia by workers by way of their commerce union, Akavia, over unpaid pension premiums.
One worker advised Breakit that they haven’t acquired their wage from the corporate lately, nor have acquired their pension premiums ‘for a number of months’.
Breakit estimates that spherical of redundancies in November impacted 20% of Utopia’s workforce.
A Utopia spokesperson advised Breakit: “We sincerely apologize to all affected workers and stress that we’re taking this matter very critically. All late funds have been recognized and can be resolved within the coming days”.
Breakit studies that Stockholm-based Utopia R&D Tech was beforehand referred to as ISPY Group earlier than it was purchased out in 2018.
The Swedish firm’s turnover, in line with Breakit, was SEK 67.3 million in 2021, with an working revenue of SEK 3.6 million and a workforce of 44 folks.
MBW requested Utopia for a remark concerning the state of affairs with its firm and workers in Sweden.
A spokesperson advised us at the moment (March 30): “Utopia has grown extraordinarily quick in two years. Our Swedish entity alone grew 5x in workers, which is one out of a number of of our improvement places of work.
“We dealt with greater than €300 million final yr, and proceed to develop very quick. Now we’re adapting our group to market shifts to make sure that we will proceed to evolve our enterprise in a sustainable method.
“All funds talked about within the submit have already been recognized and are being resolved. We’ve got arrange processes and buildings to make sure that this gained’t occur once more.”
Utopia acquired US-based ROSTR and Austria-based music knowledge analytics platform, ForTunes, in December 2021, paving the best way for the institution of Utopia’s Creator Companies unit in 2022.
That acquisition fashioned a part of a shopping for spree at Utopia lately, with a string of UK-based acquisitions together with: bodily music distributor Cinram, Absolute Label Companies, Liverpool-based music writer and publishing administration firm Sentric Music Group, and UK-based distributor Correct Music Group, amongst many others.
In April, Ulf Zick exited his position as Managing Director, Worldwide at Common Music Germany to hitch Utopia, the acquisitive Switzerland-headquartered fintech agency headed up by Markku Mäkeläinen.
Six months after becoming a member of Utopia as Chief Advertising and marketing Officer, Zick introduced he was leaving the Swiss firm for a job again at Common.Music Enterprise Worldwide