Qobuz files for 'protection proceedings' in France and seeks extra funding

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.

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

Thanks to gowiththeflow on our Forums for alerting us to the story. Are you prepared to pay a premium for higher-quality streaming and downloads? Join the debate on this Forum thread.

MORE: High-resolution audio - everything you need to know

Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching whathifi.com in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.