Extremely bad news for some of the world’s leading independent labels as leading UK distributor, Pinnacle Distribution, has entered administration.
One of the UK’s leading independent distributors Pinnacle held a 3.8 per cent share of the albums market in the third quarter of 2008.
Indie music label association AIM today held an emergency meeting for impacted labels, urging members that should their label be, “distributed by Pinnacle it is imperative that you take steps quickly to protect your position as best you can.”
The distributor handled provision of releases from 1,000 indie labels, including Dramatico, One Little Indian, and Fierce Panda.
Music Week reports administrator Matthew Tait said, “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.”
Key titles being distributed by Pinnacle in Q4 include Fleet Foxes’ debut album (Bella Union), Eva Cassidy’s Somewhere (Blix Street), Nine Inch Nails’ The Slip (Null Corporation), Belle And Sebastian’s The BBC Sessions (Jeepster) and The Katie Melua Collection (Dramatico) the report informs.
There seems no end to the bleak situation, as news of Pinnacle’s problems must be coupled with recent information confirming Woolworths has also entered administration. This means EUK, Woolie’s music and entertainment distribution arm has also collapsed, impacting supplies of physical product through Woolworths and Zavvi stores.
The latter firm has managed to achieve replacement distribution for its high street shops, but confirmed online orders may not be met, saying, “We will be canceling existing customer orders where delivery cannot be guaranteed. Zavvi.co.uk would like to apologize for any inconvenience and would like to assure customers that this decision was not taken lightly.”