SXSWORLD

U.K. Indie Labels Carry On Despite Catastrophic Warehouse Fire by Serena Kutchinsky T releases and box sets, not to mention hundreds of thousands of fi lm DVDs, was burned to the ground on August 8. Th e building was the main storage facility for the U.K.'s biggest distributor of independent home entertainment, PIAS. Suddenly, the livelihoods of more than 150 independent labels were under threat. For PIAS, the immediate con- cern was feeding demand for its biggest artists. Among the releases in jeopardy was the debut album from Charlie Simpson, a former boybander-turned-singer/song- writer. Young Pilgrims, which was due to be released on PIAS' own label the following Monday, was seen as a Top 10 dead certainty. Luckily, Simpson's album was he eyes of the world were on London in early August, but for all the wrong reasons, as rioters rampaged across the city. Amid the chaos, the U.K. music industry was dealt a crippling blow. A giant Sony warehouse housing more than three million CDs, vinyl Th e Girl's Ben Watt, saw its entire back catalogue go up in smoke. With no plans to re-press, it means early vinyl releases will become col- lectors' items. Watt wrote on Facebook: "Virtually all stock was lost in the Sony/PIAS warehouse fi re during the London Riots … We have a handful of copies of some releases left on sale on our online shop. But that's it. Sorry, folks. Hard to know what to say really." With the insurance claim delayed by unsubstantiated allegations that the fi re was either arson or a professional heist, the Association of Independent Music quickly responded, establishing a loan fund of £350,000. Iconic dance label Buzzin' Fly, which is owned by Everything But released on time and went straight in to the charts at number six. Th is was due largely to behind-the- scenes negotiations among PIAS, Sony and Proper, PIAS' former competitor and now distribution partner. Within two weeks, it was almost business as usual, thanks to Sony locating a new warehouse and Proper taking the independent sector distribution. As PIAS director Peter Th ompson said: "Nobody looked at this as a commercial enter- prise – our sole aim was to get the business running." Although the partnership with Proper was born out of an emergency, it might continue. As Th ompson explains: "Proper understands the inde- pendent sector better than a big corporate machine like Sony. Customer service needs to be diff erent when dealing with a broad range of smaller stores. Our relationship with Proper might have long-term potential." With the money-spinners safely on the shelves, thoughts turned to the smaller labels. Music media quickly drew doom-laden parallels with the 2008 bankruptcy of Pinnacle, which distributed more than 400 labels. Most of the survivors of that crash had transferred to PIAS. Merida Sussex, owner of Stolen Recordings (home of Pete and the totals over £3million. Th ompson and his team had the arduous task of working out the value, packaging and pressing costs of every single release. Th e fi gures are heart-wrenching. Dance label Ninja Tune lost 120,000 records in the fi re. Indie trailblazers Full Time Hobby lost 100,000 units in the fi re, including vinyl and special editions worth £500,000 in retail value. As label boss Nigel Adams wearily points out: "We were really shocked the day it happened. It's tough enough for indies, but to lose all your stock seemed like a sick joke." 28 SXSW ORLD / N OVEMBER 2011 Pirates), recalls the impact of that experience. "Th e Pinnacle crisis made us more self-suffi cient. It taught us not to rely on the big things. Our distributor was huge, HMV is huge, the banks are huge and they're the things which are folding while we survive." PIAS' insurance claim, which went in at the start of September, Firefi ghters battle the blaze that consumed the Sony/PIAS distribution warehouse in the Enfi eld area of North London By the end of November, Wenham hopes the fund will have curbed the cash-fl ow problems of almost 100 labels. Th e loans are being off ered on a one-year, no interest basis. Despite fi nancial worries, a spirit of regeneration abounds. As Full Wenham explains: "I took the view that however the insurance would go, it would be a slow process. And, how much they will pay out is unclear. Th e smaller labels are more vinyl-based. If the insurance com- pany fails to consider the diff erence in production costs between CDs and vinyl, that's going to hit them hard. Alternatively, they could pro- vide basic per unit compensation or, which I think is more likely, merely cover the stock which needs to be re-pressed." As AIM Chairwoman Alison loans with donations. Fundraising gigs have been held everywhere from Brighton to Charlottesville, Virginia. Various compilations are planned, including a digital-only off ering from newly formed collec- tive Love Music, Hate Violence. Due for release on November 28, it will feature tracks from acts from 12 of the aff ected labels. LMHV has been working closely with another nationwide campaign, LabelLove. Born the morning after the fi re, it has staged everything from rock benefi ts in Glasgow to big name DJ gigs in London. LabelLove founder Hannah Morgan tells of the campaign's unex- pected success: "I put out a tweet saying 'we should organise a fundraiser,' and suddenly I was receiving off ers of support from all over the world. We have raised just under £3000 so far. When our events are fi nished, we will pass the money to AIM/PIAS." Despite initial fears, it seems the independents will survive. Th e beleaguered state of the music business meant that coping mecha- nisms were already in place. And, as always, the crisis has bred creative responses. ■ Time Hobby's Nigel Adams says: "Th e upside has been the outpouring of good will for indie labels and people realizing how integral they are to exposing new music." Various projects have been launched to help supplement the AIM Serena Kutchinsky is Online Editor for the Sunday Times Magazine. MATTHEW BAXTER

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