Indie Labels Distribution Crisis

Independent labels are set to hold an emergency meeting after the distribution company Pinnacle filed for bankruptcy, leaving almost 400 labels without distribution.

Pinnacle had worked with independent labels for some time, helping many small labels reach across the nation and beyond. Of the labels affected, some are no doubt home to some of your favorite bands, with Rough Trade home to The Strokes and many more.

In a statement the Association Of Independent Music has said "It is quite clear that this is an extremely serious situation for the labels caught by the sudden collapse of Pinnacle. The meeting this morning was conducted in the presence of a barrister, Mr Philip Flower, who is a specialist in corporate insolvency."

The statement added: "It is a unique feature of the independent sector that, in troubled times, competitors can take steps to help each other out. We are sure that, although this is bad news, the effect on labels can and will be minimised as much as possible by the support of AIM and the community."

Peter Thompson, manager of rival distributor Pias told the Financial Times that some small labels may fold as a result of the crisis. "I can’t rule out that small indie labels will have to close. It has been a tough year for everybody and a blow like this at this stage of the year will hurt," he said.