Fueled By Ramen Going Bust?
Web report suggests famed label is in trouble.
A news post on the Music Industry News Network website made yesterday (21st June) suggests that Fueled By Ramen is in financial trouble.
The post reads:
"Insiders have been speculating lately as to the financial status of record label Fueled by Ramen. The currently New York based record label, founded in 1996 by John Janick and former business partner Vinnie Fiorello in Florida, was initially dedicated to releasing music by bands such as Less Than Jake and Jimmy Eat World. The label began to garner more mainstream attention after signing and becoming home to the likes of Paramore, Panic at the Disco and Pete Wentz's, some would say "seminal", Fall Out Boy. After having technical ties severed with Fall Out Boy (which continues to be released under Wentz's imprint label, Decaydance), up-and-comers Hey Monday, VersaEmerge and The Cab now claim residence of the label. Recently, FBR veterans such as "The Academy Is" have seen greatly decreased sales, while it appears that their smaller bands have begun looking for support elsewhere as the economy only worsens. Wentz himself put it best in a recent ‘Tweet’: “If you aren't just a little bit depressed, then you aren't paying very much attention.â€
A source says the financial expenditure going into these bands has not so far proved profitable and that in an effort to keep the label above water, there is currently talk of dropping several bands or bankruptcy could be a conceivable outcome for Janick and Co. Tooth & Nail Records have allegedly shown bonafide interest in Seattle based rock band This Providence, along with Equal Vision purportedly displaying attention to the aforementioned VersaEmerge. Unfortunately several bands may be without a label entirely if things continue down the same path without improvement.
Craig Kallman, chairman of FBR’s umbrella label Atlantic Records, was unavailable at this time, and so was unable to speak about the fate of upcoming releases such as pop-punk band Cobra Starship’s new album and the new EP from a recently renovated The Cab.
Tours are still scheduled for multiple bands through the summer, although there hasn’t been any mention of Hey Monday’s speculated arena tour. Instead, The Academy Is will be performing at Six Flags stages across the country despite the amusement park’s similar financial problems. Perhaps this season will be the boost Fueled by Ramen needs- ticket and merchandise sales will certainly bring in funds- but it’s possible that if the label doesn’t drop bands and increase sales soon, they may face bankruptcy this fall."
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