The Welsh Music Foundation is suspending operations following a cut in funding from the Welsh Government, NME reports.
The WMF acts as a development agency, supporting and promoting the music industry in Wales. However, as Wales Online reports, it will now cease to operate following the government's refusal to offer continued core funding for the agency.
The WMF assisted at every level of the music industry in Wales, aiding musicians, venues and festivals as well as studios and rehearsal rooms plus labels and managers.
Alan James, WMF Chair, said: "Despite our efforts over the past nine months to negotiate continued core-funding, the Welsh Government’s offer of a six-month extension to enable the company to secure an alternative income stream whilst continuing to provide the core service was deemed by the WMF board an unviable proposal. The board therefore decided not to accept the offer of funding and to proceed to suspend the company’s operations."
A Welsh Government spokeswoman said: "Welsh Government offered WMF an extension of funding until December 2014 to allow its services to the music industry to continue whilst the organisation seeks replacement funding streams. This offer has been declined. We are exploring options to develop an advice service that works for all creative industries, including music."
James added: "Having carefully considered a number of options, and in the knowledge that there is no further commitment from Welsh Government to fund our service to the industry, it is the only responsible option currently available to us."
"The board of WMF remain committed and will seek new investment and partnerships to support the development of the music industry in Wales."
Following the news earlier today (July 1), both Radio 1 DJ Huw Stephens and Cardiff-based band Joanna Gruesome paid tribute to the work done by the WMF.
Sad news about the end of the Welsh Music Foundation @WALESMUSIC. It did a lot of good for the music industry in Wales.
- Huw Stephens (@huwstephens) July 1, 2014
so sad to hear that @WALESMUSIC is closing, they funded us going to the US last year, pretty much changed the course of the band
- joanna gruesome (@JOANNAGRUESOME) July 1, 2014