Digital Railroad fails to secure emergency financing and closes business

Last week, Digital Railroad, a leading provider of online archiving and marketing services to professional photographers, announced that it was scaling back its business and seeking emergency financing to sustain its business. Yesterday the Business posted an announcement on its homepage “We’re sorry to inform you that Digital Railroad (DRR) has shut down. On October 15th we reported that the company had reduced its staff and was aggressively pursuing additional financing and/or a strategic partner. Unfortunately, those efforts were unsuccessful. Therefore Digital Railroad has been forced to suspend all operations. This archive may only be accessible for the next 24 hours”.
The sudden rise and fall of the four-year-old company focused on providing an online archiving and image marketing service has left many photographers and agencies scrambling to download images and implement alternative solutions to replace the service provided by Digital Railroad. In addition it is not know what will happen to any outstanding royalty payments Digital Railroad likely owes to photographers from DRR’s Marketplace stock portal. The company previously stated that it served more than 1,300 individual photographers and 65+ agencies including Virtual Picture Desk, UPI Newspictures, Redux Stock, Noor and VII Photo.

Web: www.DigitalRailroad.net

Related:

Digital Railroad scaling back business & shopping for a buyer (Oct 16, 2008)

PhotoShelter exiting stock photography business to focus on archive service (Sep 12, 2008)

Digital Railroad restructures, lays-off 25 (Jan 10, 2008)

Digital Railroad launches Marketplace beta (Apr 13, 2007)

Digital Railroad receives $10 million for product development and international expansion (Feb 05, 2007)

Interview with Evan Nisselson of Digital Railroad (Jul 28, 2006)

Digital Railroad is back on track with $5.2 million in Capital (Jun 18, 2005)

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