Retail Track: Ada In The U.k.

The Alternative Distribution Alliance's new independent distribution division in the United Kingdom is up and running.

Susan Rush, formerly GM of Pinnacle Records, has been named managing director of ADA U.K. and will report to ADA president Andy Allen.

The new division, which was announced at ADA's June 14-16 convention in Philadelphia, is an obvious first step in Europe. Allen notes the music that ADA historically distributes—alternative rock—"travels well."

Allen says ADA was motivated to look beyond the United States by the labels it distributes here. Those labels say they often experience difficulties with deals abroad, particularly with obtaining sales information, which is "often spotty or incomplete," Allen says.

Also, he cites "the importance of the U.K. market and the symbiotic cross-pollination that has always existed between the U.K. and the U.S." makes the launch of ADA U.K. the next logical step.

So far ADA U.K. has signed four U.K.-based labels: London's Ear Candy Records, TuneTribe Records and Because Music as well as Earache Records in Nottingham. It has also inked a deal with Bieler Bros. Records in Miami.

The first release arrived in April from Mohair. ADA U.K. is also working two Warner Music Group (WMG) albums, M Craft on 679 Recordings and the Field on Black Lab Recordings.

ADA U.K. started building its front-end from scratch in February, putting together contracts, label statements and other nuts and bolts, Rush reports. The Entertainment Network, owned by Cinram, will handle manufacturing, pick, pack and ship services and other functions.

In addition to Rush, ADA U.K. has hired Nick Roden, formerly head of labels at TuneTribe, as repertoire manager; Lisa Bardsley as label manager; and Ian Harmon as business manager. Like Rush, the latter two came from Pinnacle Records.

At the convention, Allen also announced that ADA now offers its label partners "a global digital distribution solution" by leveraging WMG's existing agreements with leading online and wireless carriers around the world.

Allen also addressed the "paradox of a major owning an independent distribution company," in his closing address. "It's a relationship that many have viewed with skepticism," he noted. "But the reality is rather than be a threat to independence, the relationship with Warner Music has been a boon to it, opening up resources that would be simply unavailable otherwise."

WMG doesn't strip mine acts or force-feed services. It respects and supports the independent spirit, he explained. "[WMG] is, after all, a company [originally] founded by independent music entrepreneurs several of whom—legends like Ahmet Ertegun, Seymour Stein and Jac Holzman—can still be found working there every single day."

Allen notes that the recent acquisition of Ryko, which is "working side by side with ADA but independently of each other" while both are backed by WMG's resources, allows the company to provide even more services to a wider range of indie labels.



UAV RAYS: UAV Corp., the music and video racking, manufacturing and content company based in Fort Mills, S.C., is up on the high wire.

Industry sources say the company is flirting with a Chapter 11 filing, although a company spokesman says the rumors are wrong.

On June 20, UAV announced that it shuttered its wholesale operation, laying off almost 300 employees.

The company, which had about $100 million in revenue in its most recent fiscal year, continues operation with about 40 staffers for its content business and manufacturing operation.

UAV had been trying to sell its content division, which licenses budget product for distribution in convenience stores, drug stores, gas stations and discount department stores. But a sale of that business fell through; an earlier effort to sell the racking division also failed.

The company said in a statement, "The sale of the content division was critical to the company as UAV has been operating for several months under increasing financial stress. Without this sale in place, the company no longer had sufficient funds to operate and therefore reluctantly closed its distribution division while it continued to seek a buyer for the entire company."