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Haven't posted in some time because I've been busy, but this story hits close to home because our label took a nasty little hit with this on our last release. Fortunately enough we're just losing revenue on the last release, and the guys who handle our distribution over at Music Response are in the process of ink'ing a deal with a larger distributor who I have much more confidence in, being that it is one of the largest music distributors worldwide - I won't mention any names till it's finalized though.
However, this does affect quite a lot of people and a good many of the worlds best indie labels. They held 4.3% of the UK music market. A good bit of shuffling will be going on and quite a few people aren't going to make it out of this. I've talked to friends elsewhere and this is pretty ugly all around.
I've know about this since earlier in the month when it was announced, wish I could post a list of the 400 labels and indie film companies that will be affected, but their site has been taken down by the administrators.
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Music distributor Pinnacle goes into administration
One of the largest independent distributors of music in the UK has suffered the same fate as Entertainment UK, with the loss of 94 jobs
The downturn in the British economy claimed another casualty this week, with music distributor Pinnacle Entertainment suffering the same fate as Entertainment UK. Scarcely eight days after Woolworth's entered administration – bringing one of the country's largest distributors with it – Pinnacle finds itself in the same dire predicament.
The Association of Independent Music (AIM) announced an emergency meeting, to take place on December 4, so that labels could receive more information and support. "We will do everything we can to help the labels to minimise their exposure and manage all necessary legal and financial matters as quickly and as cost effectively as possible," AIM CEO Alison Wenham said in a statement.
The problem is this: without the distributors delivering CDs to retailers, how will anyone buy them?
Pinnacle distributed DVDs, software, and releases from more than 400 record labels, including work by artists such as the Strokes, Tom Waits, Black Sabbath, Morrissey and the Libertines. Amazon and HMV are among the retailers who relied on their services.
Pinnacle was one of the largest independent distributors in the UK, with a 4.3% share of the UK music market as of 2007, according to the BPI.
Though the distributor's website, like something out of a 2001 web "How To" guide, remains festooned with animated Santas and twinkling Christmas lights, 94 employees were made redundant yesterday. Accountancy firm BDO Stoy Hayward was appointed as administrator for the company.
In a statement, BDO Stoy Hayward's Matthew Tait blamed the bankruptcy on the "sudden and steep" downturn in the economy.
However, this does affect quite a lot of people and a good many of the worlds best indie labels. They held 4.3% of the UK music market. A good bit of shuffling will be going on and quite a few people aren't going to make it out of this. I've talked to friends elsewhere and this is pretty ugly all around.
I've know about this since earlier in the month when it was announced, wish I could post a list of the 400 labels and indie film companies that will be affected, but their site has been taken down by the administrators.
______________________________
Music distributor Pinnacle goes into administration
One of the largest independent distributors of music in the UK has suffered the same fate as Entertainment UK, with the loss of 94 jobs
- Sean Michaels
- guardian.co.uk, Thursday 4 December 2008 11.39 GMT
- Article history
The downturn in the British economy claimed another casualty this week, with music distributor Pinnacle Entertainment suffering the same fate as Entertainment UK. Scarcely eight days after Woolworth's entered administration – bringing one of the country's largest distributors with it – Pinnacle finds itself in the same dire predicament.
The Association of Independent Music (AIM) announced an emergency meeting, to take place on December 4, so that labels could receive more information and support. "We will do everything we can to help the labels to minimise their exposure and manage all necessary legal and financial matters as quickly and as cost effectively as possible," AIM CEO Alison Wenham said in a statement.
The problem is this: without the distributors delivering CDs to retailers, how will anyone buy them?
Pinnacle distributed DVDs, software, and releases from more than 400 record labels, including work by artists such as the Strokes, Tom Waits, Black Sabbath, Morrissey and the Libertines. Amazon and HMV are among the retailers who relied on their services.
Pinnacle was one of the largest independent distributors in the UK, with a 4.3% share of the UK music market as of 2007, according to the BPI.
Though the distributor's website, like something out of a 2001 web "How To" guide, remains festooned with animated Santas and twinkling Christmas lights, 94 employees were made redundant yesterday. Accountancy firm BDO Stoy Hayward was appointed as administrator for the company.
In a statement, BDO Stoy Hayward's Matthew Tait blamed the bankruptcy on the "sudden and steep" downturn in the economy.
