Having raised $80m to date, creator agency Talenthouse alerts investors to ‘critical financial situation’
Just a year ago, creative agency Talenthouse announced the expansion of its business through new buyback.
But 2023 is proving very different for a platform that is suitable for artists with design contracts at major brands.
The Swiss-based company warned in statement that it faces a “serious financial situation,” but has found an investor willing to buy 32% company is in trouble.
That investor is Luxembourg-based Garage Italia Finance, which controls 23% of voting shares in the company. Parent company Talenthouse AG announced on May 14 that it had found a new investor, but did not disclose the investor’s identity until the most recent statement released on Sunday (May 21). ).
“The company is in the process of restructuring to deal with a critical financial situation. The company, its investor and its auditors are working on solutions [for] best practices, including previously announced capital increases,” the statement said.
The statement did not address the question on the minds of many involved in the situation – whether the new investment would give the company the capital it needs to pay what it owes its creditors and contractors.
What is known is that, at an investor-agreed price – 0.1 CHF per share – one 32% investment will amount to approx 14.94 million CHF (about 16.5 million USD).
Talenthouse, says it “connects via 20 million advertising with brands and audiences,” has provided talent to businesses and organizations like Coca-Cola, NetflixNike, Snap, sony and the United Nations.
Database report that Talenthouse has raised a total of $80.1 million dollars in funding to date.
Among its investors are Animoca Brands, invest $2 million in Talenthouse in 2019.
(Animoca Brands is the parent company of the game supermarket The Sandbox. It recently buy majority stake in Pixelynx, a super music game platform founded by musicians deadmau5 (Joel Zimmerman) and Richie Hawtin (Plastikman).
Over the past two years, the company has conducted a frenzy of acquisitions in an effort to grow its business. Among other things, it has acquired competitor Zooppa, stock image provider EyeEm, Coolabi, a developer of children’s apps and TV shows, and the Creative Committeea company dedicated to connecting freelance visual artists with the music industry.
Creative Committee clients include Music Sony, Warner music, Popular music group, Atlantic recordColumbia Music, Interscope Records and Virgin Records.
However, according to insider quoted by guard, Acquisitions drained the company of cash at a time when the tech sector was going through a downturn.
Talenthouse shares – which trading on the Swiss SIX stock exchange – has decreased more than 99% from June 2021 highs and traded on Wednesday (May 24) at CHF 0.01 per share.
Earlier this year, it was reported that Talenthouse did not pay its talents. The Observer speak with 12 Talenthouse contractors, who said the company’s UK division, which is responsible for much of the company’s work, failed to pay them contracts worth thousands of pounds.
In March, UK-based business consulting firm Quantuma, which is said to be owed Talenthouse money, filed a court order to end Talenthouse’s operations. guardian report. If allowed, that would force Talenthouse into a forced liquidation.
A few days later, Talenthouse AG released a statement saying that “a strategic review revealed that some of Talenthouse’s subsidiaries have significant outstanding liabilities, including wages, taxes and social security. , with money that these subsidiaries cannot cover.”
Among those subsidiaries are Zooppa, EyeEm and Talenthouse.
“The company has decided not to sponsor these entities anymore,” the statement said.
It added that the company is planning a new round of fundraising “to have the means to retain parts of the company that are sustainable (such as Coolabi’s business), to invest in proposed ‘Creator Services’ and reorganized the support of the creator platform.”
Earlier this month, the company announced that its annual report – due on April 24 – would be delayed to May 31.
“During our review of Talenthouse Group’s metrics and business, issues have come to light and need more time to be resolved appropriately,” the company said.
Talenthouse was originally founded in 2012 by Austrian businessman Roman Scharf, who is still the company’s president.
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