Following the sudden closure of Canada’s largest independent vinyl distributor RPM last month, details surrounding the company’s bankruptcy have begun to emerge. A sworn statement filed by RPM president Paul Herzog in Ontario court reveals the company owes $8.9 million CND / $6.7M USD in liabilities.
The majority of the funds are owed to Canada’s major labels, according to Billboard,
Universal Music Canada is owed approximately $5.4 million CND ($4.1 million USD), Sony Music Canada is owed $2 million CAD ($1.5 million USD), while Warner Music Canada is owed $800,000 CAD ($601,081 USD). Three independent distributors are also owed large sums: Outside Music is owed $127,000 CND ($95,478 USD), F.A.B Distribution is owed $98,000 CAD ($73,640 USD), and Distribution Select is owed $62,000 CAD ($56,584 USD).
The statement of affairs lists RMP’s total assets as $4,454,599.21 CAD ($3,347,169 USD) including $2,585,000 CAD ($1,941,970 USD) in inventory, $1,412,200 CAD in cash ($1,060,942 USD); $138,732.40 CAD ($104,225 USD) in property, $50,000 CAD ($37,563 USD) in machinery, equipment and plant, and $55,000 CAD ($41,319 USD) for vehicles.
RPM was based in Concord, ON, and was a supplier for approximately 400 independent music retailers. The distributor filed for bankruptcy two weeks after shutting down back in early January.