That there Sanctuary Group yesterday announced it was "making good progress" with its programme of "strategic disposals" designed to turn around the fortunes of the flagging cross-sector music company. The announcement, made ahead of the company's AGM in London, followed that previously reported confirmation last November that the company was planning to sell off a number of its businesses in order to secure the long term future of the wider group.
The new statement made special reference to plans to restructure the company's recorded music business in the US, which will no doubt see the group's American record labels downsized considerably. Confirming that restructure is a particular priority, the group's statement said: "In response to the significant changes currently underway in the US music market, to which our US operations have not been immune, the board has approved a proposal to restructure the recorded product division's US operations", adding that the restructure would prioritise "growing higher margin digital and licensing businesses while continuing to exploit our catalogue rights".
Changes at the group's US recorded music business follow the departure of that division's CEO, Merck Mercuriadis, late last year. And, as much previously reported, the wider restructuring and asset selling follows radical changes at the top of the independent music company in the last two years, including the departure of founders Andy Taylor and Rod Smallwood from the board, all of which happened after the firm slipped into financial free fall after a period of radical expansion.