Prominent dance music distributors Intergroove has gone bust, leaving many record labels out in the cold and many industry sources trumpeting this as the nail in the coffin for vinyl, especially following the rise of digital downloads.

Intergroove – which is responsible for distributing vinyl and CDs from labels such as Finger Lickin’, TCR, Adrift, Baroque, Four Twenty, Cocoon, Get Physical, Sex On Wax and Silver Planet – was one of the world’s largest dance music distributors and while it shuts up shop, dance music genres such as breakbeat, house and techno will undoubtedly feel the sting.

With Intergroove gone, only two major dance music distributors remain in the UK – Amato and Unique, who merged earlier this year. “Intergroove has been very honourable in upholding their payments to labels,” said Abel Reynolds from Fingerlickin’.“But as a result of the company closing, quite a few labels will go bust too, because they won’t receive payment for records distributed by Intergroove in the last couple of months.”

Stay tuned to ITM for more updates.