Touch and Go Records has announced that they will be closing the indie distribution portion of the business. The label explained:

It is with great sadness that we are reporting some major changes here at Touch and Go Records. Many of you may not be aware, but for nearly 2 decades, Touch and Go has provided manufacturing and distribution services for a select yet diverse group of other important independent record labels.

Unfortunately, as much as we love all of these labels, the current state of the economy has reached the point where we can no longer afford to continue this lesser known, yet important part of Touch and Go's operations.

Touch and Go will be returning to its roots and focusing solely on being an independent record label. We'll be busy for a few months working closely with the departing labels and scaling our company to an appropriate smaller size after their departure.

Labels affected by the closure include Jade Tree Records, Flameshovel Records, Suicide Squeeze Records, Merge Records, Kill Rock Stars and many others.

Some more details can be found via the source, at Chicago Tribune.