The Beastie Boys' 8-year-old label Grand Royal is closing its doors, citing "mounting debts, decreasing assets, and exceedingly harsh industry conditions." "This is one of the most difficult decisions

The Beastie Boys' 8-year-old label Grand Royal is closing its doors, citing "mounting debts, decreasing assets, and exceedingly harsh industry conditions." "This is one of the most difficult decisions we've ever had to make," Grand Royal co-founder and Beastie Boys member Mike Diamond said. "Over the years, the Grand Royal family had grown to include some of the most talented musicians and staff in the business. It's tragic that the same growth has also produced an overhead and infrastructure that can no longer be viable."

Last year, Grand Royal inked a distribution deal with Virgin Music Group Worldwide for the United States and Canada. The first Grand Royal/Virgin release was "Relationship of Command" from hard rock act At The Drive-In. The album has sold almost 1 million copies worldwide.

The label's roster has included such acts as Atari Teenage Riot, Ben Lee, Sean Lennon, Scapegoat Wax, BS 2000, and Luscious Jackson. It remains unclear what will happen to the Grand Royal's remaining artists.

"Our intentions were always simply to create a home for exciting music and the people who were passionate about it," Diamond said. "It really sucks that we can't continue to do that."