The new division is headed by director Nick Stewart, who joined as head of catalogue in November 2005, and will be supported by former HMV head of music Phil Penman, who has been recruited as general manager.

Warner has declined to comment on the move, beyond a statement, which says, "In order to enhance our strategic planning and operational focus, we are incorporating under Rhino UK the Warner Music UK specialist and catalogue-based divisions, which we view to be at ...