UMG To Shut Sanctuary Records In The U.K.
September 5, 2007 at 5:43 AM (PT)
The U.K. recorded music division of SANCTUARY MUSIC GROUP will close, its new owner UNIVERSAL MUSIC said on WEDNESDAY, as it looks to develop the British firm's merchandising, catalogue and management businesses instead, reports REUTERS.
UNIVERSAL, which bought the struggling music group for 44.5 million pounds ($89.4 million) in AUGUST, said the U.K. recorded division, which has artists such as the CHARLATANS and BRIAN WILSON, would no longer operate as a stand-alone front-line label.
It will start consultations to minimise redundancies; a source familiar with the situation said it would start discussions with the artists shortly.
Under its new owner, SANCTUARY's sizable catalogue unit will operate alongside UNIVERSAL's U.K.'s catalogue division, while the rest of the group will continue under its current management as stand-alone businesses in the merchandising, agency and artist services, the source said.
The SANCTUARY RECORDS U.S. unit will continue to operate as it is for now, but this could be reviewed at a later date.