The London-based firm behind a new music streaming app has entered administration.
Bloom.fm, which launched last year, encountered difficulties after Russian television company TNT Media Investments withdrew as an investor.
As a result, Digital Distribution Networks Limited entered administration on Friday 2 May.
The business had previously seen success in the market, registering 1.2 million users in its first year and planned to launch an online version of the service later this year.
Simon Thomas and Nick O’Reilly of Moorfields Corporate Recovery were appointed as joint administrators to the company.
Thomas, partner at Moorfields, said: “Bloom.fm has already proved that it has developed a service which can rival its competitors and secured 1.2 million users in just over a year.
“Whilst it has suffered a set-back following the withdrawal of funding I am confident that we can secure a buyer that can continue to grow the service.”
The administrators have stated they anticipate a “significant amount” of interest in the business.