The Chicago Tribune reports today that Chicago’s 28 year-old distributor/label Touch And Go is cutting both their staff and distribution. The move will see the distributor ceasing manufacturing for 20 smaller labels including: Kill Rock Stars, Chicago locals Flameshovel, and Merge.
Touch and Go will lay off an unspecified number of workers and continue on functioning as a label.
The statement from Touch and Go founder Corey Rusk:
“It is with great sadness that we are reporting some major changes here at Touch and Go Records. Many of you may not be aware, but for nearly 2 decades, Touch and Go has provided manufacturing and distribution services for a select yet diverse group of other important independent record labels. Titles from these other labels populate the shelves of our warehouse alongside the titles on our own two labels, Touch and Go Records, and Quarterstick Records.
“Unfortunately, as much as we love all of these labels, the current state of the economy has reached the point where we can no longer afford to continue this lesser known, yet important part of Touch and Go’s operations. Over the years, these labels have become part of our family, and it pains us to see them go. We wish them all the very best and we will be doing everything we can to help make the transition as easy as possible.
“Touch and Go will be returning to its roots and focusing solely on being an independent record label. We’ll be busy for a few months working closely with the departing labels and scaling our company to an appropriate smaller size after their departure. It is the end of a grand chapter in Touch and Go’s history, but we also know that good things can come from new beginnings.”
On a personal note, I’ve worked in the warehouses of two indie distributors over the years and been laid off from both of them. Both of those jobs were held in far less wobbly economic times (2001 & 2006) and the struggles of this of business model were evident then. It’s a transitive time for the industry, hell…most industries that ship a physical product, and it’s even tougher to continue to while the economic rug is being yanked out from beneath you.
It’s tough, because on one hand Taking Tiger Mountain is an MP3 blog and admittedly, I consume much of my music in the gray market, digital way. Everyone’s pockets are getting smaller by the day, but we should do what we can to support this industry. Click the iTunes & Insound links on the posts here. Try to go see a show and pick up a shirt or print.
And most of all, good luck to those who found themselves without a job today…
UPDATE – The Daily Swarm reports that the the entire staff of 20 has been let go. Sad, sad, sad.
As a counterpoint to the doom and gloom, let’s turn to David Byrne’s Survival Strategies for the changing industry.
Iron and Wine – Such Great Heights (Postal Service Cover)
