Qobuz, the French high-resolution music streaming and download service, has placed itself in "La procédure de sauvegarde" which roughly translated means 'protection proceedings' under French law.

In a statement the company says the procedure is intended to give it time to "catch its breath" over the next few months while it undergoes restructuring and attempts to improve its cash flow. "Like all start-ups, Qobuz is constantly looking for new funds," the company says.

In France a company in "la procédure de sauvegarde" is still considered to be solvent and continues to trade normally, providing its services and paying its bills.

Qobuz President Yves Riesel says the difficult economic situation in France, and in particular the challenges of selling music online, have made it harder for the company to raise the necessary finance with investors. Riesel was seeking a third round of funding for the business, but this was not forthcoming.

MORE: Read our full Qobuz review

However he remains committed to the raison d'être behind the company's foundation: the delivery online of high-quality, European (and particularly French) music rather than the mainstream Anglo-Saxon music delivered by other streaming services in the the US and UK.

More after the break

Last week Qobuz launched its high-res download service in the UK as well as seven other countries: Ireland, Belgium, Luxembourg, Germany, Austria, Switzerland and the Netherlands. It is also currently the only streaming service to offer music in CD-quality (16-bit/44.1kHz) resolution, for a monthly fee of £20.

To date Qobuz has around 25,000 subscribers and revenues of €9m (£7m).

MORE: Qobuz high-res download service launches in the UK

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