By December 1990 Rough Trades cash flow had come to a halt. Also in December, two thirds of Rough Trades staff had been axed due to poor financial management. On the 1st June 1991 the company had no other choice but to close down.
What effect did this have on the record label and distribution?
Rough Trade had written the rule book for independent production and distribution. This rulebook became the most successful independent music companies in the music industry. Rough Trades work had inspired and enabled to many other independent record companies to be created as they had a formation to go by. The independent companies owned 40% of the music industry. However, the financial down fall of the company meant the company had to be split ip and sold off to try and deal with the financial payments they were unable to pay.
How did major record labels branch out into the independent music scene?The major record companies began to sign artists that were apart of the smaller independent companies. This meant that both the independent and major record companies would begin to join together.
What actions were taken to revive Rough Trade?
Geoff Travis and Jeannette Lee remained working together when Rough Trade was no longer in business. Travis and Lee were introduced to Jarvis Cocker and soon afterwards began to manage him. In the same year, 1993 they had learnt from their mistakes and signed the band 'Pulp'. Pulp brought Rough Trade back to their financial position in the music industry. They had learnt how to sustain chart positions and as a result of this they successfully received 5 consecutive top 10 singles. The profit they made from Pulp enables Travis and Lee to buy back Rough Trades name in 2001 after 25 years since Rough Trade was open. Rough Trade is now back in business.
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