The future of many UK independent music labels was under threat on Thursday following the collapse of Pinnacle Entertainment, the specialist distributor.

Pinnacle, one of the UK’s largest distributors of independent music and supplier to the likes of HMV and WH Smith, went into administration on Wednesday. The company, which distributes work by Morrissey and the Libertines, had a 4.3 per cent share of the UK music market last year.