Wednesday, June 29, 2005

Father Knowles Worst

According to contactmusic, one person can be blamed for a lot of Sanctuary Group's financial woes:

Record giant Sanctuary Group has blamed BEYONCE KNOWLES' father MATHEW, who runs the company's urban music division, for a 40 per cent fall in profits and spiralling debt. The world's largest independent label now has a debt burden of $215 million (GBP118 million) and its shares fell nine per cent after the company revealed it planned to sell off assets to lighten the debt.

Sanctuary, which handles artists including LOU REED, MORRISSEY and DESTINY'S CHILD, claims album delays from Knowles' Sanctuary Urban cost the company 1.3 million sales worth $17 million (GBP9.3 million) in the first half of this year (05). The company has shifted the structure of power within Sanctuary Urban to hand other executives control of production. It also plans to cut 10 per cent of its workforce and amalgamate offices.
I had a feeling there would be problems with Sanctuary when they signed that deal with Todd Rundgren. And the Axl thing sounded a bit fishy too. But I hope they'll be okay.

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