Distributors have already inked contracts with some of Pinnacle's leading labels - notably Rough Trade with PIAS and Dramatico going to ADA - while a raft of new deals are nearing completion.

ADA is understood to be close to signing contracts with Epitaph, Eagle Rock, VP Records, Greensleeves, Cooking Vinyl, Essential and Jazzee Blue, while PIAS UK managing director Peter Thompson and Proper Distribution managing director Steve Kersley have been in talks with a number of labels.

The majors are ...