British independent music company Sanctuary Group Plc will wind down its U.S. label's front-line efforts this summer, but will continue to run a catalog operation, according to a source within the company.

U.K. execs arrived in New York last Thursday (March 29) and alerted staffers the label would be cutting operations by June 30, according to one source at the U.S. label.

The company said last month it was "making good progress" with its program of strategic disposals, and planned to realign its recorded product operations in the United States.

A source familiar with the situation says the label will still work on current records, like last year's releases from hellogoodbye and Halifax, as well as those coming to market, like Dolores O Riordan's "Are You Listening," which is due out May 15.

"It is important to do the right things for albums like those," says one source. "But then everyone who deals with front-line will be leaving at various times over the new few months," including marketing, publicity and most sales personnel.

Meanwhile, the catalog, licensing, and new media department and certain back-office functions will remain staffed in the U.S. going forward.

The label is home to artists such as Morrissey, Widespread Panic, Motorhead and Idlewild.