Bloodshot co-founder responds following allegations of unpaid royalties and plans to sell label

On Monday (7/20), the non-ownership staff of Bloodshot Records sent out a letter to all artists on the label’s roster, saying that as of July 3, co-founder Nan Warshaw was trying to sell the label, and that they’d discovered errors in royalty statements. “The amount of royalties we believe are due to artists and songwriters at this point in time is considerable,” the letter reads. “We have repeatedly asked Warshaw that the statements be sent to the artists, and we have expressed frustration, disappointment, and skepticism at the lack of progress. It has become increasingly apparent to us that Warshaw’s attention is pointed toward the sale of the catalog and not the transparent and complete settling of those royalty statements.”

Warshaw had resigned from her position at the label in March of 2019, following allegations of sexual misconduct made by Lydia Loveless against Warshaw’s domestic partner, Mark Panick. As part of her resignation, remaining co-founder Rob Miller was to buy Warshaw’s 50% share in the label, which reportedly presented its own problems. From the letter:

However, it is our understanding that due to the fact that Miller cannot pay “fair market value,” Warshaw and Miller have come to an agreement, of which the stipulations are confidential, that states the catalog will be put up for sale to third-party buyers. Since many releases are not eligible for reassignment, only a portion of the catalog would be included in this sale. We have not received any indication from Warshaw that she plans to inform all catalog artists about the sale of their masters or the disclosure of any unpaid royalties until the sale is in motion.

You can read the letter in full below.

Billboard reached out to Warshaw and Miller, and while Miller declined to comment, Warshaw shared a 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.

Artists who have released records on Bloodshot include Al Scorch, Alejandro Escovedo, Andre Williams, Andrew Bird, Banditos, Barrence Whitfield and the Savages, Ben Kweller, Ben Weaver, The Blacks, Bobby Bare, Jr., The Bottle Rockets, Charlie Pickett, Cordero, Cory Branan, Danbert Nobacon, The Deadstring Brothers, The Detroit Cobras, Devil In A Woodpile, Dex Romweber, Dollar Store, Eddie Spaghetti, Exene Cervenka, Firewater, Freakwater, Gore Gore Girls, Graham Parker, Grievous Angels, Ha Ha Tonka, I’m Not Jim, Jason Hawk Harris, J.C. Brooks & The Uptown Sound, Jim & Jennie and the Pinetops, Jon Langford, Jon Rauhouse, Justin Townes Earle, Kelly Hogan, Laura Jane Grace & The Devouring Mothers, Th’ Legendary Shack*Shakers, Luke Winslow-King, Lydia Loveless, Maggie Björklund, Mark Pickerel, The Meat Purveyors, Mekons, Moonshine Willy, Murder by Death, Neal Pollack, Neko Case, Nora O’Connor, Old 97’s, Paul Burch, The Pine Valley Cosmonauts, Rex Hobart & the Misery Boys, Rico Bell, The Riptones, Robbie Fulks, Roger Knox, Rosie Flores, Ruby Boots, Ryan Adams, The Sadies, Sally Timms, Sarah Shook & the Disarmers, The Scotland Yard Gospel Choir, Scott H. Biram, Scroat Belly, The Silos, Split Lip Rayfield, Trailer Bride, Vandoliers , The Volebeats, Waco Brothers, Wayne Hancock, Wee Hairy Beasties, Whiskeytown, Whitey Morgan and the 78’s, William Elliott Whitmore, The Yawpers, The Yayhoos, and possibly more.