Independent labels' trade body AIM's lawyers have written to the administrators of Pinnacle terminating dozens of labels' contracts with the distributor.

The independent distributor based in Sidcup, Kent went into administration - roughly equivalent to Chapter 11 bankruptcy in the U.S. - on Dec. 3. AIM held an emergency meeting at is west London HQ yesterday for labels affected.

A letter has now been sent on behalf of 92 labels to the administrators BDO Stoy Hayward. The letter states that the 92 labels are terminating their agreements with Pinnacle and asks for confirmation that the labels can collect their stock from the premises.

AIM has appointed solicitor Martyn Bailey from Forbes Anderson Free and barrister Philip Flower, a specialist in corporate insolvency.

"It is hoped that the administrators will not seek to prevent labels from collecting their stock as they are entitled to do. If necessary, the labels will make an application to the Court to protect their position," said AIM's chairman and chief executive Alison Wenham in a statement.

It is understood there are concerns that the lease on the warehouse may soon be up, adding pressure on record companies to retrieve their stock as soon as possible.

AIM is also advising other labels, who have appointed their own lawyers, on potential solutions for short-term warehousing and new distribution partners.

Labels affected include Cooking Vinyl (Black Francis, Billy Bragg, Ryan Adams), Bella Union (Fleet Foxes) and Dramatico (Katie Melua, Carla Bruni). It is understood that Dramatico has secured alternative distribution with ADA.