Published Dec 04, 2008Increasingly hard economic times have claimed yet another victim in the music industry. UK-based distribution company Pinnacle Entertainment announced late Wednesday that it has gone bankrupt, leaving some 94 employees jobless and hundreds of indie labels without a distributor.
Pinnacle was responsible for releasing albums from more than 400 indie labels, including Rough Trade, Drag City, One Little Indian and Fierce Panda.
Accountancy firm BDO Stoy Hayward has been appointed to handle the bankruptcy, Billboard reports, with BDO's business restructuring director Matthew Tait saying: "Unfortunately the company has been affected by the sudden and steep downturn in the UK economy. We are looking at how best we may be able to handle the trading assets and work with the company to achieve the most favourable outcome."
Independent labels trade body the Association of Independent Music, or AIM, is holding a meeting today (December 4) at its London headquarters to see how the labels affected can be helped.
"AIM is holding an emergency meeting for all labels affected by the Pinnacle administration, which will be attended by corporate insolvency specialists," said CEO Alison Wenham in a statement, according to Billboard. "We will do everything we can to help the labels affected to minimize their exposure and manage all necessary legal and financial matters as quickly and as cost-effectively as possible."
According to labels trade body the BPI, Pinnacle had a 4.3 percent market share in 2007. Pinnacle's wholesale business Windsong Holdings has also gone bankrupt.