Bloodshot Records, the beleaguered independent label that announced it was closing its office earlier this week, has been acquired by Exceleration Music, a company formed earlier this year to invest in indies.
The Bloodshot catalog includes many historically important releases by artists that existed somewhere near the intersection of roots-rock and punk, with albums from Neko Case, the Old 97s, Ryan Adams, Robbie Fulks, Jon Langford, the Waco Brothers, the Sadies, Alejandro Escovedo and many others.
Exceleration said that, with its acquisition, it was “beginning a long-term campaign to revitalize the presence and availability of the Bloodshot catalogue, both digitally and physically.” As for whether there will be any future releases from the label beyond maintaining and promoting the catalog, Exceleration says it’s too early to say.
The announcement comes right on the heels of the label declaring on its website that its office was “permanently closed” and co-founder Rob Miller posting a long farewell message saying that, “regrettably, it is time for this phase of Bloodshot Records to come to an end. I will no longer be a part of the label I started over 25 years ago as an impossibly ill-conceived hobby.”
Representatives for Miller’s co-founder, Nan Warshaw, issued a statement to Variety suggesting that she was not happy about Miller’s goodbye address Monday not mentioning the sale: “Mr. Miller was well aware of this when he published his statement earlier this week, but chose not to reveal that for reasons that only he knows.”
As for whether Bloodshot will be an ongoing imprint for new releases or exist to promote existing ones, Exceleration addressed that in an FAQ. “Given the recent difficulties at the label it is too early to say exactly what will happen with new recordings,” wrote the company. “There is a lot of work to be done at this juncture to right the ship and stabilize the operation. Once that is done, we intend to speak to artists to work out how we can work with them to ensure their work is represented in the market as effectively and powerfully as possible. Once we start to do that, we will have a better idea as to whether new releases will be part of the plans.”
With new releases not necessarily in the cards, the purchase represents a different kind of transition than the one that went down in January when Exceleration announced its first deal, to partner with the blues label Alligator Records (coincidentally also, like Bloodshot, a Chicago-based indie). In that case, Alligator founder Bruce Iglauer stayed on, and the label declared plans to continue on much as it had prior to the new partnership.
Bloodshot came into this sale as a much more visibly troubled enterprise, with Miller having split with co-founder Nan Warshaw about two years ago in an unamicable dispute over sexual harassment allegations publicly made by artist Lydia Loveless against Miller’s longtime domestic partner, resulting in Warshaw announcing she was leaving the company; later she claimed she’d been forced out. When that dispute resulted in an internal financial investigation, it was revealed many artists were due money the label did not seem in a position to pay out, resulting in further bad PR. The label had been known to be up for sale last year, and an article in the Chicago Reader said a valuation had been done that set the value for Bloodshot at $3.2 million. Terms of the newly announced purchase were not revealed.
“As has been well documented in the press, there has been an irreconcilable breakdown between the founders, (and) the label has effectively stopped operations,” the company said in a statement. “Exceleration has no comment to make on the label’s past difficulties. We are focused solely on ensuring the label’s identity stays alive, that its legacy is properly recognized and celebrated and that the Bloodshot artists and recordings are properly positioned and remunerated, with a view to maximizing earnings for all.”
Exceleration has some big names from the world of independent music at its helm. Glen Barros, its founder, is the former CEO of Concord Music Group. Exceleration’s other leaders are Dave Hansen (executive chairman of Merlin and ex-GM of Epitaph Records), Charles Caldas (former CEO of Merlin), Amy Dietz (previously the GM of Ingrooves) and John Burk (former president of Concord). Other moves made by Exceleration since its startup this year include partnering with the Ray Charles Foundation for releases from that legend’s vaults.
The company provided quotes from several artists or managers who are pleased that the sale guarantees their releases won’t go into limbo.
Said Howard Greynolds of Overcoat Management, which represents Loveless, “The team behind Exceleration Music brings to the table a level of experience and integrity that is much needed in this moment. I look forward to working with them in both protecting and creating new opportunities on the catalog Lydia Loveless has with the label.”
Laurens Kusters, representative of the Justin Townes Earle estate, commented, “We are happy to see that the team at Exceleration Music, a team that includes people I’ve known and worked with for over two decades, has taken ownership of the label, safeguarding its catalog and artists en-route to a prosperous future.”
And William Elliott Whitmore, whose album “I’m With You” was one of the last Bloodshot releases to come out under the previous regime, said, “I am both happy and relieved to hear that the Bloodshot catalog has landed in the hands of independent-minded folks who have a long history of looking out for artists’ interests. I look forward to seeing what the future holds.”
Variety also reached out independently to several artists or managers formerly affiliated with the label. Those that responded indicated a mixture of hope, given Exceleration’s promise to clear up the payments that are due to many, and at least a bit of remaining skepticism given the tumultuous recent history of the label.
Said Kathie L. Russell of RedKats Artist Management, which represents Sarah Shook & the Disarmers: “We learned today via email of the new ownership. I informed them that we were no longer on the roster and were now with Thirty Tigers and that our main concern would be making sure we are paid our royalties. They responded that they were aware we were no longer signed to the label, and that not only would they be paying royalties, but they intend to increase the visibility of the catalog to provide more opportunities for artists.
“We were not happy about leaving Bloodshot, not happy that Nan Warshaw forced the sale and essentially backed Rob Miller into a corner, as we were very happy being Bloodshot artists,” continued Russell. “We left due to the situation created by Nan.However as to the new ownership, as long as they pay our royalties, I don’t think we really have an opinion on them one way or another. Time will tell.”
Also reached for comment by Variety, artist Jason Hawk Harris said: “I was encouraged to find out that the catalogue was bought by people who seem to care about the legacy and cultural importance of Bloodshot as an institution. That said, they’ll have to work hard to gain the trust of myself and the other artists whose music they’ve purchased. Actions speak louder than words.”
Asked how he felt about the prior version of the label coming to an end, Harris said, “In a word? Heartbreak. For Rob. For the staff. For the artists that were working on records that are now in limbo, and if I can be so vain, for myself too. Bloodshot was the perfect label for me. They trusted me and I trusted them. I don’t know where to go from here. I’m sure I’m not alone there. I love Rob Miller. He is a gruff, hard-assed teddy bear with mountains of integrity. Though he was bound by NDAs and other legal measures” in the ongoing dispute with Warshaw, “he always picked up when me or my team called, and gave us as much information as he legally could. I can’t begrudge him anything he said in the letter, or the timing of it. He tirelessly gave 25 years of his life to independent musicians. He is allowed a goodbye, in my opinion.”
A representative for Exceleration said it was too soon to know whether any previous staffers will be on board as the label transitions. Miller could not immediately be reached for comment.