Key indie label distributor company declared bankrupt

the strokes

Pinnacle Entertainment responsible for over 400 indie labels

Dec 3, 2008
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Indie label distribution company Pinnacle Entertainment
has been declared bankrupt, with the firm letting go over 94 people today (December 3).

The company is the latest casualty of the credit crunch, and puts the entire future of indie labels into question, as the company was responsible for releasing records from over 400 indie labels.

Independent labels trade body AIM called an emergency meeting for tomorrow (December 4) to see how the indie labels affected can be helped.

Among the hundreds of influential record labels that were distributed by Pinnacle are Rough Trade (home of The Strokes, pictured), One Little Indian, Drag City and Fierce Panda.

Accountancy firm BDO Stoy Hayward was appointed as the administrator to deal with the bankrupt company, reports Billboard, and its business restructuring director, Matthew Tait said the firm is looking at how best they may be able to “handle the trading assets and work with the company to achieve the most favourable outcome."

Stay tuned to NME.COM for the latest on this story.

--By our New York staff.
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Comments (5)

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glimmers_of_hope

Dec 4, 2008

I don't really understand the impact of this on the music - but could it mean that music from these bands won't get into the shops? Or will the indie labels be able to find another distributer? IIs this because of the recession or is it a knock on impact of people buying/obtaining music in different ways (i.e. not buying c.d's from shops) ?I think stuff like this could be awful for the really small bands who need indie labels to nurture them.

jeffn

Dec 4, 2008

This is sad - but it may herald the emergence of lots of little indie lables, truely doing things all by themselves - not relying on a distributer, just getting on with it - delivering records to local little shops by hand, but relying more in internet sales direct from their own site. The future, people, is to be found in sites like aralie.com, cherryekko.com, and sellaband.

ed2005

Dec 4, 2008

As someone who has recently set up a lavel, it is necessary to take matters into our own hands. I am waiting for the first load of 7" singles to arrive (CD single sales are so low there is no point), I have been round to independent shops to discuss stocking the first release, as well as selling it online and selling the music as mp3s through emubands to iTunes, eMusic and the like. There is a way forward; every so often the music industry goes back to basics, and DIY kicks in again. This is it happening in the cyber age, it's about working together.

xpatchx

Dec 4, 2008

Wow, bad news for the physical business. Thank God all my content is distributed through AWAL. If you haven't heard of them check them out: http://www.awal.comThey are the distributor where Arctic Monkeys, Klaxons, and Editors all got their start.

kev d

Dec 12, 2008

I've been running a small label for nearly 20 years now and whilst this is a major blow, we as a small label have been here before. In fact between 1989 and 2009 we have been here 9 times.We will survive because we want to. Its not about how much money there is: its about being able to find a great band and release the music.Keep helping us out by demanding people like HMV stock good indie music.