British independent label Telstar Records has gone into administration. In a statement issued today (April 5), Telstar Music Group co-chairman Neil Palmer says, "This is a very sad day for Telstar, it

British independent label Telstar Records has gone into administration.

In a statement issued today (April 5), Telstar Music Group co-chairman Neil Palmer says, "This is a very sad day for Telstar, its directors and its staff and unfortunately reflects the very serious problems that the industry as a whole is experiencing." He adds that the decision was made after talks of a deal with third parties "failed to reach a positive conclusion."

Andrew Stoneman and Paul Williams, partners at London-based chartered accounting group Menzies Corporate Restructuring have been appointed joint administrators. "We are currently considering a number of ways forward for Telstar Records, including the possibility of a realistic sale of the intellectual property and back catalog of the business," says Stoneman. "So far, we have not discounted any options."

Telstar's artist roster includes Mis-Teeq, Cheeky Girls and Ladytron. A spokesman says it is too early to speculate on potential job losses.

According to the statement, other units operating under the Telstar Music Group remain unaffected. These include Wildstar Records, a joint-venture with Capital Radio; publishing firm Strong Songs, a joint venture with Anna and Mark Jolley; and media buying company Media Mix.

Founded in 1982 by Palmer and Sean O'Brien as a TV compilation marketing operation, Telstar grew to become one of the country's leading independent labels. By the mid '90s it had developed and diversified its own label activities, and to date has had more than 200 chart hits in the United Kingdom.