ATOMIC POP SHUTS DOWN

Industry veteran Al Teller's Atomic Pop, a digital entertainment site that offered music from Public Enemy and Ice-T, among others, has officially closed its doors.

As first reported here last month, Atomic Pop had been facing a cash crunch and had been struggling to avoid shutting down for some time. Sources said the company could not find a financial investor. Previous backers Rare Medium had reportedly pulled out and would not continue to back the venture, sources said.

On Friday (9/8), the company's staff was called into a meeting and told the company was indeed going out of business, sources said. Sources said about 25 people have lost their jobs. The latest round of layoffs follows several employees who were fired weeks ago.

Founded by Teller, the former chief of MCA and CBS, Atomic Pop was a forward thinking online music venture that often positioned itself as anti-traditional music industry. Teller started the company less than two years ago.

Atomic Pop is the latest digital entertainment company to fall victim to financial difficulties. Other recent casualties include DEN and Pop.com.

Atomic Pop reps could not be reached for comment.