Berlin-based influencer marketing platform Brandnew IO has filed for insolvency, according to an official statement from the company’s CEO Francis Trapp.
The platform, which was launched in 2016, provided brands and agencies with tools to identify relevant influencers to work with on curating content for influencer marketing campaigns, in addition to building relationships and measuring the effectiveness of campaigns.
In an official statement announced today (August 15) on Twitter, Trapp said that the file for insolvency was due to “a number of different reasons which were partly outside of Brandnew’s control.”
However, the most important take on this as the preliminary insolvency proceedings have commenced as of August 1 2018 is that Brandnew IO is currently unable to process past influencer payments prior to the date. Meanwhile, influencers who have worked on campaigns launched after August 1 will be compensated.
The company states that influencers who have not been paid will be contacted after the opening of the insolvency proceedings by the insolvency administrator.
Official statement from Brandnew’s CEO, Francis Trapp, 15.08.18 pic.twitter.com/HoTS4nUbkj
— Brandnew IO (@BrandnewIO) August 15, 2018
The announcement has caused some backlash on Twitter with influencers who have worked with the platform criticising the payment proceedings following the company’s file for insolvency.
are you kidding me – so you can carry on working with influencers when you haven't paid the ones owed?
— Emma Bradley (@emmaand3) August 15, 2018
This is shocking. An awful way to treat self employed people who are relying on these funds to feed their families.
— Leanne Cornelius (@CorneliusBlog) August 15, 2018
This is reprehensible – I’ve done the work for @TempurUK and am owed the money, which I NEED in order to pay my bills.
That people are left in financial difficulties, having waited months for payment and now waiting until Oct to see if *maybe* we’ll be paid, is horrendous.
— Hannah – Budding Smiles (@BuddingSmiles) August 15, 2018
Money aside, your statement regarding ‘not helping the perception of influencer marketing,’ is confusing. The influencer is the victim in this situation – working hard to create content only for the fee to be swallowed by an inept company. This has nothing to do with influencers.
— Twins That Travel 👯 (@TwinsThatTravel) August 15, 2018
What are your thoughts on Brandnew IO’s announcement and its effect on influencers going forward? Tweet us at @talkinfluence or email firstname.lastname@example.org.