Bloodshot Records Co-Owner Nan Warshaw Responds to Accusations
The employees of insurgent country and roots label Bloodshot Records got the attention of many earlier this week when they sent a memo to their artists explaining how the label was up for sale, and were accusing embattled co-owner Nan Warshaw of accounting irregularities that had resulted in underpayments to artists and songwriters.
“The amount of royalties we believe are due to artists and songwriters at this point in time is considerable,” the letter said in part. “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 these royalty statements.”
Nan Warshaw announced on March 9th, 2019, that she would be stepping down from her position at the company, and selling her 50% stake in the label to co-owner Rob Miller after sexual harassment and assault allegations were made against her partner, Mark Panick, by artist Lydia Loveless.
On Wednesday afternoon (7-22), Nan Warshaw released a statement to Billboard addressing the allegations.
“I have poured my heart and soul into Bloodshot Records since founding it more than 25 years ago,” Warshaw says. “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,” Warshaw continues. “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.”
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Bloodshot Records artist Sarah Shook also addressed the issue in a written statement posted on Wednesday that she also read aloud on Facebook and Instagram (see below). Shook says in part,
“To hold the entire roster and staff of the Bloodshot Records label hostage, despite Rob Miller and the staff’s literal best attempts to solve these issues in such a way that the least damage is done, is a personal decision Nan is making and her utter and blatant disregard for the well-being of everyone involved, her callousness in the face of heartfelt appeals to her sense of decency, her refusal to allow Rob Miller to buy her out of her share of the company, and the cease and desist letter she issued in response to the staff members demanding answers and accountability, are the marks of a truly sad and empty person for which life holds only the small-minded joy of punishing others.”
Sarah Shook added further on Thursday afternoon, “If you’re wondering why I’m taking the hard line stance on Nan that I am, please understand I have more information than I can publicly disclose and I’m making decisions based off that information that I believe is in the best interest of the affected Bloodshot artists and staff.”
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Bloodshot Records was founded by Rob Miller and Nan Warshaw in 1993 as an “insurgent country” record label catering to the punk-inspired roots resurgence. Bloodshot helped to launch the careers of artists such as Ryan Adams, Neko Case, The Old 97’s, Justin Townes Earle, and is the current label home of Sarah Shook and the Disarmers, Ruby Boots, Robbie Fulks, Jason Hawk Harris, Laura Jane Grace, The Vandoliers, Scott H. Biram, Wayne “The Train” Hancock, The Yawpers, The Banditos, Murder By Death, The Mekons, and others.
Incidentally, former Bloodshot artist Lydia Loveless also announced a new album this week called Daughter that will be released on her own label on September 25th. She has released a new song called “Love Is Not Enough.”
July 23, 2020 @ 12:58 pm
Wow! Best of luck to the artists.
July 23, 2020 @ 1:03 pm
I wish there was something more interesting going on in my life than this story, but this is it for now. I’ll follow Sarah’s lead. And I can’t wait to see her in concert again.
July 23, 2020 @ 3:19 pm
Sarah Shook live is a fun time
July 23, 2020 @ 1:15 pm
“…may have been some errors in our prior accounting processes.”
Hmmm, really? “May” have been? Still not sure after 16 months? Need another 16 to be sure? What were they? Ummmm, the same repeated *cough* human *cough* errors?
That said, soley blaming 1 of the 2 owners is suspect. Sure, they probably divided and conquered different tasks. But can you imagine being in a partnership with someone and having no idea that they were (allegedly) that negligent? A company I worked for had a checks and balance system of 4 different people checking payouts. Errors were rare, but caught, investigated, and fixed within days. And on top of that, outside auditors were paid as yet another level of transparency. Not saying they needed that level of scrutiny, but surely there’s somewhere in between that, and ONE SINGLE PERSON with ZERO safeguards or questions being asked from the equal partner……being SOLELY responsible for something as important as royalty payments. That narrative seems a little out of balance in my mental ledger of bullshit detection.
July 25, 2020 @ 1:33 am
Yeah but this is a record label founded by enthusiastic fans. People who were kindof dabbling in accounting because they had to, who were probably never expecting for their venture to snowball and turn into a proper business in the way it did. A lot of decisions must’ve been made on a basis of decades of friendship and trust. My guess is you can’t quite compare it to just any professional company.
I’m thinking of my two buddies who started a nightclub / indie disco type thing that became pretty big in our city and over the years employed an impressive number of staff. The two guys at the centre of it never learned (or cared) how to properly account.
One day their offices were actually raided by the tax feds because they thought they must’ve been hiding ginourmous earnings – which they never did because they never nearly earned as much as they could have in the first place. They had been spending and losing money left right and centre. They put on gigs that did not nearly break even (but bands and audiences loved them). Redecorated al the time. Let their staff generously put 4cl liquor into drinks that said 2cl on the menu.
In a way you might say that these were investments, because these were the things that made the club a cult thing, a place that people would return to for years when other venues would be pop up, be fashionable for a few months and then abandoned by the public when the new hip thing came along. But if they were investments, they were inadvertently so, there was no such thing as long term planning.
This was just a business that worked because two people at it’s centre loved doing what they did, and it worked not because, but despite of their business acumen. My two buddies would often argue heatedly, but never get lawyers involved, there was a basis of respect and friendship and knowing the other guy meant well even in the most bitter of debates. Lawyers and fallouts came in only in the final year when a new landlord took over the building and wouldn’t prolong their club’s lease (I did mention there was no planning ahead) and everything came to an end.
I know I’m projecting, but I’m guessing that Bloodshot may have been closer to my buddies’ company than a “proper” controlled business.
July 25, 2020 @ 10:10 am
Just for the record, having covered Bloodshot for many years, I never took the business side of the company as anything but professional and by-the-book. They may convey a loose attitude publicly, but it was a reputable business, and both Rob and Nan approached it that way. I think that is one of the reasons the employees wrote the letter that stimulated this whole thing, they wanted to be ahead of this issue as opposed to behind it. As far as we know, there were never any irregularities at Bloodshot until Nan was forced out. That is when the math got fuzzy.
July 25, 2020 @ 11:20 am
You don’t have to get a CPA to do basic accounting. All you have to do is care enough about the artists who are depending on you to be at least a little competent and show a little fortitude. I know those those things don’t fit the indie music lover aesthetic, but when you’ve essentially made a promise to pay someone royalties, you should stretch a little out of your comfort zone and actually follow through. Excuses are like assholes, and I’m seeing more than one asshole in this story.
July 24, 2020 @ 6:04 am
Well, as long as she poured her heart and soul into it…..
July 24, 2020 @ 1:54 pm
I question a grown ass woman coloring her hair like a teenager being in charge of anything.
July 24, 2020 @ 11:17 pm
I know right, she probably has tattoos as well.
July 25, 2020 @ 5:58 am
Nothing wrong with tattoos. I’ve been collecting them since my teens, including a Tribute to my dad and some of my favourite artists. No hipster or trendy ink here.
July 27, 2020 @ 12:16 am
Bloodshot is an important label and has put out tons of great material. Check out The Yawpers, terrible name, great band!
July 27, 2020 @ 11:36 am
As much as artists don’t want to think about “business”, they should; nothing wrong with a creative Google search or asking “do you have an auditor??”. No guarantee, but do yourself a favor….