Recession Claims Record Label

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NASHVILLE, Tenn. - The recession has claimed its first major casualty on Music Row.

Equity Music announced it is suspending operations effective immediately.

This is the record label Clint Black help start in 2003.

Equity was supposed to change the way Music Row did business, but in the end, a lack of business ultimately did the label in.

"These times are troubled," sang Clint Black in one of his songs.

Like the lyrics from a country song, Equity Music Group has come across some troubled times.

The record label Black helped found five years ago effectively went out of business.

"Our investors tried to find a way to keep the doors open at Equity, but with a struggling industry, an overall decline in discretionary spending by consumers and a total freeze on credit markets, the board of directors has been forced to make this difficult decision," said Equity Records President Tim Wipperman in a statement.

"Is it a surprise, no it's not a surprise, but it's a shame," said David Ross, Music Row Magazine publisher.

Ross said during this recession country music will take a hit just like every other industry.

"There's no question about it, we're going to see a closing of the ranks over this next year to some degree," Ross said.

Especially for smaller, independent labels such as Equity.

"Because they don't have the same umbrella of investment that some of the larger companies, like a Sony or Universal have, that can really steady the boat through the high winds of economic turmoil," he said.

Up and coming group Carolina Rain is one of five acts that lost its label when Equity called it quits.

"I don't believe for a minute that this signals any kind of change in that basic core strength of the musical format," Ross said.

Besides Black, Equity's roster didn't have an artist in the top 75 list of album sales. That fact combined with a lack of digital downloads in country music contributed to its current fate. Also, a drop in tickets sales, shrinking play lists on radio, and fewer stores selling country music contributed to the label's current financial state.

About a dozen people at Equity lost their jobs when the record label shut down.