Concord is acquiring HitCo, the most recent music business co-founded by US record industry veteran LA Reid, according to sources who have spoken to Variety.
Reid, of course, had a long career within the major label system, starting when he co-founded the label LaFace as a joint venture with Arista Records, then part of the original BMG, in 1989. He later ran Arista itself, before moving over to Universal Music to run Island Def Jam, and then to Sony Music to head up Epic US. Around the time he joined Epic he also appeared as a judge on the US version of 'X Factor'.
His departure from Sony in 2017 was somewhat abrupt and followed a complaint by a staff member of “unlawful harassment”. Reid was accused of making “inappropriate remarks" about a female assistant's appearance and clothing, and "propositions that caused her embarrassment and distress, making it impossible for her to continue working at the label”.
At the time Reid said in a short statement: "I'm proud of my track record promoting, supporting and uplifting women at every company I've ever run. That notwithstanding, if I have ever said anything capable of being misinterpreted, I apologise unreservedly".
The launch of HitCo followed, it using the brand of a music publishing company Reid originally launched back in the 1990s. The new HitCo was a joint venture with another former major label exec, Charles Goldstuck, who - among other things - had co-founded J Records in 2000 with Arista Records founder Clive Davis.
Along the way, HitCo has collaborated with various artists who worked with Reid in his previous roles, including OutKast's Big Boy, Fifth Harmony's Dinah Jane and Jennifer Lopez, as well as the likes of Saint JHN, Dixie D’Amelio and Rubi Rose.
Although no official statement has been made about Concord's acquisition of HitCo, sources have told Variety that "a number of executives will be retained by Concord, among them Label President Joel Klaiman and Head Of A&R Jaha Johnson, who will continue to work HitCo projects".