Much-hyped free music site SpiralFrog appears to be spiraling out of control.

Few at the digital music company were exactly sure who was in charge following the December 26 firing of SpiralFrog CEO Robin Kent, according to ZDNet. Kent’s ouster created a void in the company’s leadership, the former employees said, and soon after, 5 of SpiralFrog’s 10 board directors and 5 company managers exited.

Now, former executives and industry insiders reportedly describe the company as reeling from a management shakeup, a missed launch date and a lukewarm reception by the major music labels to a business that supports free tunes by selling advertisements.

“The situation at SpiralFrog will certainly give ammunition to those who really never believed in the idea of ad-supported music,” said Gartner analyst Mike McGuire.

Last year, Spiral Frog caught the media’s attention as it began signing up major labels for its free, ad-supported music distribution service. It planned to launch its service by the end of 2006. At the time, the New York Times called the company an iTunes challenger, and The Guardian, a London newspaper, said Apple “took a knock” with SpiralFrog’s emergence.