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The team behind indie dance label React Music begins a new chapter this week after it says it was forced to pull the plug on the original company following the demise of Beechwood Music.
Beechwood went into administration in June, owing React 1.27m [pounds sterling] distribution income from Beechwood's 4am/Flute operation. However, React's former managing director James Horrocks reveals the company itself had built up debts of around 675,000 [pounds sterling].
"We had a successful business model and we were enjoying our best year of sales since 1999," he says. "When Beechwood went into receivership they owed us an amount we couldn't trade out in the time frame allowed. It was with great regret that we were forced to close React after 14 years of emotional investment. However, our efforts have not gone unnoticed as everyone involved has been incredibly understanding and supportive."
A new company, called Resist Music, has been created to continue from where React left off. React previously released albums ...