As reported on FasterLouder earlier this week, statistics show that the sale of CDs have reached an all time low, and when combined with the current world economic crisis it certainly casts an ominous shadow over the recorded music business globally. The prognosis is worsening, with the UK’s biggest independent distributor Pinnacle Entertainment going bust this week.

Pinnacle handle the record distribution for over 400 independent labels, and it employed more than 90 staff, so their bankruptcy will come as a major blow to the music scene worldwide. The range of labels represented by Pinnacle include One Little Indian (Bjork, Sigur Ros, Sneaker Pimps), Burning Heart (The Hives, Boysetsfire, Millencolin), Rough Trade (Belle & Sebastian, The Strokes, Antony & The Johnsons, Arcade Fire) and many more.

NME.com report that the trade body for independent labels, AIM, have called an emergency meeting to put together a strategy for how to help the huge number of labels now in danger of going down with Pinnacle’s sinking ship. The accountancy firm BDO Stoy Hayward have been appointed as Pinnacle’s administrator, and their business restructuring director Matthew Tait told Billboard that they are going to “handle the trading assets and work with the company to achieve the most favourable outcome.”

Stay tuned to FL for updates.