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Some 150 employees were let go late Wednesday as ranking executives told the staff that the company was going out of business. Execs said the troubled interactive network could only afford to pay its staff through Wednesday.
THAT WAS DEN, THIS IS NOW
Another Music Netco Bites The Dust
They survived founder Mark Collins-Rector's love life, but ultimately they couldn't keep the creditors away from the door.

Confirming widespread media speculation, privately held online entertainment company Digital Entertainment Network (DEN) has closed up shop. The move had been rumored for weeks and, for a change, not just by us.

Some 150 employees were let go late Wednesday as ranking executives told the staff that the company was going out of business. Said execs said the troubled interactive network could only afford to pay its staff through Wednesday (5/17), according to sources present at the meeting.

DEN has been trying to raise additional equity and has been searching for potential partners, but time ran out, a highly placed source told hitsdailydouble.com (that's us, in case you hadn't noticed).

“[DEN] just ran out of money,” another source said. “The company's previous problems and commitments were just too much to handle. They couldn't make payroll.” Rumors of DEN's demise have been circulating for months following reports of widespread spending, high executive salaries, cutbacks and scandalous reports of alleged sexual misconduct by a senior executive.

Former Capitol Records CEO Gary Gersh and Gold Mountain Management chief John Silva, principals of G.A.S. Entertainment Co., joined Digital Entertainment Network last year to launch the DEN.Music Group. The two were elevated a few months ago in an attempt to save the company, sources said. Gersh and Silva will continue as heads of G.A.S., where they represent such artists as The Beastie Boys, The Foo Fighters, Rage Against The Machine, Sonic Youth and others. On the heels of DEN's closure, sources said the DEN.Music Group will be folded into Grand Royal, the Beastie Boys' imprint.

Hey, we don't invent this stuff (except on slow days, of course); we just report it.

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