Lumberjack Mordam Music Group will cease operations, according to an email sent by CEO Dirk Hemsath to Lumberjack's distributed labels, which was posted on Hemsath wrote that, "We had hopes for the last several months that we'd be able to find a way to move forward but the triple hits of an expensive merger, a dying business and a bad economy have made it impossible. We are hoping to be able to get some money to labels, but I'm not sure how much or when as we have to try and collect money from customers. If you have not yet moved your distribution to another company, please make arrangements to do so as soon as possible."

More than 100 independent labels were partnered with LMMG at one point or another. Among them are 1917 Records, Doghouse Records, Initial Records, Lookout Records, Corrosive Recordings, Sympathy For the Record Industry, and many others.

Calls to the office number listed on Lumberjack's website were not answered at presstime.