The label is apparently considering several funding options...
ALAN MCGEE’s POPTONES label have hit back at claims of crisis insisting redundancies announced this week were simply part of “a cost cutting programme.”
As revealed yesterday (November 20) on NME.COM, the label, founded early in 2000 by the former Creation Records mainman, has laid off staff, keeping a small number on a consultancy basis. A bleak future had been forecast by some industry watchers.
However, a spokesperson for the label told NME.COM today that: “In line with current circumstances within the music industry worldwide, the Board of Poptones has instigated a cost cutting programme, involving staff at it’s North London offices. The redundancies that have had to be made reflect the the Board’s desire to bring costs at the label in line with current levels of revenue and cash resources.
“The Board has initiated a strategic review of the
Poptones business, including the future financing options available to the business. A further announcement will be made at the appropriate time.”
Chairman, Mike Blackburn, said:
“These are difficult times in the music industry. The Board is examining a number of options and a further announcement will be made in due course.”
It is understood that four staff are remaining.
Poptones have seen some critical and commercial success recently with Cosmic Rough Riders and The Hives though have released over two dozen albums in around 18 months that have not yielded any sort of return.