Sony examines future as McDonald departs.

The sudden departure of Blair McDonald as Columbia Records managing director has fuelled new speculation about the future shape of Sony Music UK.

McDonald left his desk at the major's Great Malborough Street headquarters last Wednesday after being told his contract would not be renewed. It is understood that it is due to expire in the coming weeks, three years after he succeeded Ged Doherty in October 1999.

The move comes amid growing speculation about Sony's plans for its current UK structure of three mainstream companies: Columbia, Epic and Sony S2.

No final decision is understood to have been made about the future of Columbia beyond McDonald, nor for any structural changes at Sony UK.

Sony Music communications vice-president Gary Farrow declined to comment on plans, beyond stating, "We are considering all options."

But discussions within the UK company are underway as part of a global examination of Sony's operations following a poor set of financial figures for the quarter to June 30 2002, in which the company's international music operations lost $86m.

Around 100 of the major's 5,000 US-based staff were laid off at the beginning of last month, while changes were introduced in April at Sony Germany with the establishment of a new set-up which removed the traditional label structure and replaced it with one split between domestic and international repertoire. Sony's previously separate Scandinavian operations in each territory were combined into a single company for the region earlier this ...