Mathew Knowles says to split from Sanctuary
Posted on: Friday, 10 March 2006, 11:54 CST
LONDON (Reuters) - Mathew Knowles, father of R&B singer Beyonce, said his management firm Music World Entertainment and record label Music World Music Record Label had severed all ties with troubled British music group Sanctuary.
Knowles said in a statement on Friday the "parties have come to a mutual agreement to part ways," and that he would regain ownership of both companies.
In January Sanctuary, the world's biggest independent music label and home to Elton John, announced a 110-million-pound ($191 million) equity fund-raising rescue deal to save it from losses stemming from Urban Records, a company it set up with Knowles in September 2003.
Sanctuary said Urban Records would release no more records after contributing to a group loss in 2005 of 143 million pounds. Sanctuary has been cutting jobs and non-core businesses and last year issued a string of profit warnings on the back of troubles at Urban Records.
Sanctuary shares have been trading below 1 penny in recent months, at 1540 GMT they stood at 0.33p valuing the company at around 1.224 million pounds.
Source: REUTERS
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