Swiss tech company Utopia Music has appointed liquidators for its U.K.-based R&D division, according to a report in CMU.

The start up said last week it would be winding down the operation in an effort to consolidate its R&D offices. However, as the CMU report notes, news of its liquidation suggests the company can’t meet its financial obligations. The move is said to impact 25 members of staff.

“We could not maintain the U.K. entity’s sustainability, which is why we have entrusted it to the liquidators. Nevertheless, we remain committed to delivering services to the music industries through our other 10 operational entities,” a spokesperson said.

News follows hot on the heels of an announcement that Absolute Label Services, which Utopia acquired in 2022, is the third company it has let go of recently following a spending spree. Utopia Founder Mattias Hjelmstedt told press that this is due to “a strategic evolution” that will allow his company to “refine” its focus and double down on core service offerings.

In November, Utopia laid off what MBW reports to be around 20% of its global headcount. In the U.S., it's currently battling a $37m legal case from SourceAudio, which accuses it of bailing on an acquisition deal. Acquired companies still under its ownership include physical distributors Proper and Cinram Novum in the U.K., and Lyric Financial, which provides royalty advances, and tech startup Musimap in the U.S.