Rocklin-based music technology company Beatstoc recently filed for Chapter 7 bankruptcy after racking up $7.28 million in liabilities.
In its Nov. 24 filing, the company stated it does not expect to be able to pay back unsecured creditors after administrative expenses are paid.
Beatstoc, originally based in Santa Monica before relocating to Rocklin, describes itself as an exclusive experience platform that provides music artists with another avenue to generate royalties by selling what it called "Pieces of PoPularity," or "PoPs." Participating artists could offer a limited number of annually renewable PoP's through an "Initial Fan Offering." The company said in press materials that PoPs gave fans access to exclusive engagement and experiences with their favorite artists, through the Beatstoc platform.
The company stated it has 30 creditors with unsecured claims for a total of $7,280,183 in liabilities, with zero assets.
Its largest unsecured claim was for $3.5 million from PhilanTrepreneur Inc., which has a mailing address that traces back to Beatstoc's principal place of business on Stanford Ranch Road in Rocklin. Its next largest unsecured creditor with a claim of $1 million was listed as Carter Family Trust out of Bend, Oregon.
According to the bankruptcy filing, the company stated that Covid-19 severely impacted the music marketplace in the spring of 2020 and the company was unable to recover. It stated it believes its technology became obsolete.
Beatstoc is also named in two pending lawsuits in Placer County that stem from cases in 2020 alleging breach of contract.
The filing stated the company's director, Gene Jackson, also filed for bankruptcy on Nov. 23.
Jackson did not respond to a request for comment by the Business Journal. Attorney Joe Angelo, who filed the bankruptcy on behalf of Beatstoc, declined to comment.
