The company, which distributes labels such as Dramatico and One Little Indian, reportedly told staff the news this morning. Senior executives are believed to be in meetings this afternoon in an attempt to resolve the situation.

Staff are not answering phones at the company's Sidcup headquarters and there is no indication on its website www.pinnacle-entertainment.co.uk. However, adminstrators Matthew Tait and David Gilbert at BDO Stoy Hayward confirmed the news this afternoon.

BDO said in a statement, "Matthew Tait and David ...