From the New York Times: After a Judgment, Music Label Files Chapter 11 Bankruptcy
TVT Records, long ranked as one of the top independent labels in the recording industry, filed for bankruptcy protection Tuesday as part of an overhaul that involved staff cutbacks and the closing of certain international offices, the company said.
Until recently, TVT, based in New York, had been able to weather the industry’s sales falloff with hits from artists like the rapper Lil Jon. But the company was hit last year with a $9.1 million court judgment after a federal jury in Miami decided that it had interfered with another company’s plan to release old recordings of the rapper Pitbull, who is now on TVT’s roster.
TVT has suffered from lackluster sales recently, though its founder and president, Steve Gottlieb, pointed to a budding radio hit from Pitbull and a coming album from the rock act Default.
Mr. Gottlieb said the label, which he founded in 1985, had laid off about 20 people, which he said was about half its staff.
The company’s troubles seemed to cheer at least one of Mr. Gottlieb’s nemeses — Trent Reznor of the industrial rock act Nine Inch Nails, which released recordings through TVT before a dispute resulted in the band departing the label. Mr. Reznor posted a Web link to news about the impending bankruptcy on his band’s Web site, writing “Not ALL news about the music industry is bad these days.”