In a sudden turn of events, SCP Merchandising, an Illinois-based merchandising company catering to artists such as Mitski, Father John Misty, and Carly Rae Jepsen, has abruptly shut down, leaving its staff laid off and uncertainty looming over the retrieval of merchandise. The company is expected to file for bankruptcy, adding further complications for both clients and employees.
Multiple former SCP employees revealed on LinkedIn that the company’s workforce was unexpectedly let go on Sunday evening, and sources suggest that a bankruptcy filing is imminent. As of now, there is no clear process for artists to recover their merchandise, and those with outstanding balances will have to settle them with SCP or a potential bankruptcy trustee before accessing their stock.
Priority will be given to clients who have no outstanding balances or are making arrangements to pay off unpaid bills. An email is set to be sent out on Tuesday to clients without outstanding payments, outlining procedures for inventory pickup or shipping. Clients with balances due must clear their debts first and then contact SCP to coordinate the retrieval of their stock.
After Thursday, December 21, the process of retrieving inventory may slow down as SCP only has bank approval for payroll through that day. Following this, a court-approved trustee will replace company employees, potentially introducing uncertainties regarding inventory handling.
Artists relying on SCP for their online stores, including Mitski, Father John Misty, Alec Benjamin, Dashboard Confessional, Louis the Child, and Chappell Roan, have witnessed their platforms being taken down. Artist management sources report a lack of communication from SCP and are currently navigating how to collect their remaining merchandise. The decision to work with SCP initially stemmed from favorable rates, with the company taking 15% of net sales compared to the roughly 20% of gross revenue charged by many competitors.
Established in 2013 by owner Stephen Hopkins, SCP positioned itself as a “full-service creative collaborator” for artists and brands. Notable clients included Billie Eilish, Freddie Gibbs, Tanya Tucker, Manchester Orchestra, Wiz Khalifa, Loma Vista Recordings, and the festival Bittersweet Daze. Hopkins, in addition to founding SCP, serves as the co-founder/CEO of Web3 company Dropolis and co-founded 3E Love, a company specializing in clothing for individuals with disabilities. The closure of SCP marks a significant shakeup in the merchandise landscape, impacting artists and fans alike.
