The record label Telstar has gone into administration with debts of £8.5m.
The label counts the likes of The Hives, Mis-Teeq, Craig David and The Cheeky Girls among its artists.
The Daily Mirrorsays the move protects creditors but leaves the future of its top stars in doubt.
The loss of £8.5m is from the company's latest accounts - for 2001. Telstar was hit by disappointing sales of Craig David's second album and Victoria Beckham's double A side single.
An insider told the newspaper that because David is with a division called Wildstar, he won't be affected.
Mis-Teeq are expected to be re-signed, but the future of the other artists appears unclear.
Telstar's co-chairman, Neil Palmer, said: "This is a very sad day for Telstar and unfortunately reflects the very serious problems the industry as a whole is experiencing."
How much did they invest in Victoria Beckham?
― Lizard, Tuesday, 6 April 2004 15:08 (twenty-two years ago)
this is kinda funny considering i just heard mis-teeq on american radio for the first time on sunday night
― strongo hulkington (dubplatestyle), Tuesday, 6 April 2004 15:10 (twenty-two years ago)
Heck, if she gets to keep the dough, this makes her the Sex Pistols...
― mark grout (mark grout), Tuesday, 6 April 2004 15:10 (twenty-two years ago)
What about Victoria Beckham, does she get any radio airplay?
― Lizard, Tuesday, 6 April 2004 15:11 (twenty-two years ago)
with the power of the roc behind her? she's storming the charts as we speak.
― strongo hulkington (dubplatestyle), Tuesday, 6 April 2004 15:13 (twenty-two years ago)
two weeks pass...