Bloodshot Records Co-Founder Responds to Artists’ Unpaid Royalty Claims
On Monday (July 20), the non-owner staff of Chicago’s Bloodshot Records sent a letter to every artist on the label outlining concerns of botched royalty payments, errors in accounting, and the potential sale of the label to new owners. The letter, viewed by Pitchfork, came over a year after co-founder Nan Warshaw resigned. The resignation was in response to Lydia Loveless’ allegations of sexual harassment by Warshaw’s partner, Chicago musician Mark Panick.
Bloodshot’s stated plan to move forward without Warshaw stipulated that co-founder Rob Miller buy out her 50 percent share in the company. The letter sent by Bloodshot’s staff claims that Miller could not pay for Warshaw’s share and further alleged that Warshaw owed unspecified artists, songwriters, and publishers a “considerable” amount in unpaid royalties. Find the full letter below.
While Miller declined to comment to Billboard (who also viewed the letter), Warshaw responded to the letter’s claims with the following statement:
I have poured my heart and soul into Bloodshot Records since founding it more than 25 years ago. For me, this label has always been, first and foremost, about growing and supporting unique and great artists. Having stepped away from day-to-day operations more than a year ago, I have been exploring ways to set up Bloodshot and our artists to succeed in the future, even as I know it is personally the right moment in my life for me to sell my stake in the company.
When conducting due diligence as part of that transition, we discovered that there may have been some errors in our prior accounting processes. As someone dedicated to the principle of making sure that all artists are compensated fairly and fully for their work, I made sure we immediately began to investigate those issues and how they might have impacted all of our artists, past and present. Whatever misleading reports might suggest, nothing is more important to me—professionally or personally—than making sure all accounting is entirely accurate and past mistakes are quickly rectified, and I am completely committed to doing so.
Bloodshot artist Jason Hawk Harris shared the letter on Twitter, adding, “I can confirm this—Nan Warshaw, is forcing the sale of [Bloodshot] and withholding money owed to artists.” Sarah Shook of Sarah Shook & the Disarmers also called out Warshaw in a public statement. “It seems Nan is choosing to spend her time shopping the Bloodshot label around in an attempt to find the highest bidder so she can simply wash her hands of the consequences of her actions,” she wrote.
Scott H. Biram, who has been releasing records on Bloodshot since 2004, tells Pitchfork that while he personally has not experienced issues with unpaid royalties, the ongoing situation with the label has him concerned about the future of his catalog and the music he has in the works. “It would be one thing if we were told the label was closing down—then I’d be like shit, I’ve got to go to another label,” he said. “If the label stuck around as an independent label, I would likely stay with them, but not knowing makes it difficult to navigate.”
Biram stated that he hopes the original plan of Miller taking full ownership of the company comes to fruition. “The ideal situation would be for Rob to be able to take over 100 percent and just get past this and then carry on business as usual,” he said. “I’ve had a pretty good, smooth life since the label. I was just consistently working on records and touring and, you know, I had a basically a job—a consistent income. But all of this puts a big question mark over all of that.”
Originally Appeared on Pitchfork
