Riffage Closes Shop

Fledgling online music site Riffage.com (www.riffage.com) closed its doors Friday, citing a failure to secure the funding it needed to survive. Though it had been aggressively seeking a merging partner, none were found, said the company.

Riffage's Web site was replaced with just a letter from the company explaining that it was closing. The letter stated in part: "Pioneers enjoy the thrills of new frontiers, but must also deal with the risks inherent in uncharted territories."

San Francisco-based Riffage, got its start as one of several companies, like MP3.com, that offered unsigned artists a place online to post their music for exposure and CD sales opportunities. The company had received funding from Bertelsmann Ventures, Bertelsmann's BMG Entertainment and America Online, among others.

Through a unique business model for an online music company, Riffage expanded its offerings by acquiring its own record label, 1500 Records, as well as the San Francisco concert venue, Great American Music Hall.

According to reports, about 60 employees were laid off; all will receive severance packages.

Riffage said it will put up for sale the record label and the Great American Music Hall.