The company has put its main record label business, including Telstar Records and Multiply Records, into administration after falling victim to very serious problems that the industry as a whole is experiencing, according to co-chairman Neil Palmer.
As of yesterday the labels were being handled by Menzies Corporate Restructuring. Among the acts affected by the move is Victoria Beckham, although Telstar's joint venture with Capital Radio, the Wildstar label, will not be, meaning that Craig David can breathe easily.
Mr Palmer told reporters: "This is a very sad day for Telstar, its directors and its staff. We have been involved in intensive talks with third parties over recent months in an attempt to re-structure the business and when these discussions failed to reach a positive conclusion we found ourselves in a position where we had no option but to put Telstar Records into administration."
The implications for the label's roster are unclear. A Menzies spokesman told reporters that a number of options were being discussed, including the sale of the company's intellectual property and existing back catalogue.
Anybody wanna buy Mrs Beckham's career?