Chicago indie label “Touch and Go” will drastically cut back its staff and cease its distribution services, according to a statement from founder Corey Rusk. The label will not shutter, but will operate as a heavily scaled back operation.

The 28-year-old company, a staple in the music scene in Chicago, has named the "current state of the economy" as the reason for the decision. The company is no longer able to afford charges for distribution and manufacturing services, thus resulting in the cutting of ties with 20 independent labels that it had previously worked with.

Along with SST and Sub Pop Records, the Chicago label played a pioneering role in establishing the American indie underground in the 1980s and 1990s, releasing landmark albums by noise-punk patriarchs like the Butthole Surfers, Big Black, The Jesus Lizard and Slint. This week, the label released Mi Ami's Watersports and Sholi's self-titled album.

However, as reported today by Time Out Chicago Touch and Go is taking its old-school ideology to the extreme by ceasing to release new albums and existing solely as a back-catalogue operation from here out. As a result an estimated 20 employees are now out of work.
In a statement released by Touch and Go, the company said, "It is the end of a grand chapter in Touch and Go's history, but we also know that good things can come from new beginnings."

The struggles of major labels have been well documented over the past few years. Album sales continue to suffer double-digit declines in sales, and independent acts have seen unprecedented chart success over the past few years. Acts such as the Arcade Fire and Bright Eyes have seen top-10 debuts, and earlier this year experimental rock act the Animal Collective landed at No. 13 on the U.S. album chart.