Motor City Radio Flashbacks

Memories From the Soundtrack of Your Life

BID TO BUY CHAPTER 11 VEE-JAY . . . MAY 28, 1966

May 24th, 2016

Motor City Radio Flashbacks logo (MCRFB)From the MCRFB news archive: 1966

Bid To Buy Chapter 11 Vee-Jay Records; Set Hearing June 3

 

 

 

 

LOS ANGELES — June 3 has been set as the date for Chicago bankruptcy referee Shaeffer to hear local attorney William Bluestein’s formal proposition for the purchase and reorganization of Vee Jay Records, currently in chapter 11 status.

Vee-Jay Records logo 1963 - 1965.Bluestein represents a group of individuals who are interested in reorganizing the label. He said that referee Shaeffer had “tentatively approved as feasible,” his program for rejuvenating Vee Jay last Tuesday (May 17) but then continued the hearing into June.

The matter of who gets possession of 69 Four Seasons masters was also continued until June 3.

Bluestein revealed that Vee Jay owes the government $11/2 million and has $1.8 million in creditor’s debts. The attorney said he has worked out a plan with the government to liquidate the tax claims and that all creditors would receive a percentage of the moneys owed them.

The label would be brought back to L. A. Bluestein intends to purchase all the stock owned by James and Vivian Brackens and the small per cent owned by Mr. Bracken’s brother. Bluestein’s combine is interested in operating Vee Jay’s R&B and gospel catalog. END

Beatles vs Four Seasons Vee-Jay LP (mcrfb)


(Information and news source: Billboard; May 28, 1966)

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MOTOWN GOES COLUMBIA HOUSE . . . MAY 28, 1966

May 24th, 2016

Motor City Radio Flashbacks logo (MCRFB)From the MCRFB news archive: 1966

 

Motown Goes Columbia House as Detroit Sounder Spreads

 

 

 

 

NEW YORK — Motown Record Corporation has negotiated an exclusive, three-year pact with the Columbia Record Club for mail-order distribution of product on the Tamla, Motown, Gordy, VIP and Soul labels.

The pact followed several months of negotiations between Barney Ales and Cornelius Keating, Motown and Columbia Record Club vice-presidents, respectively. Ales stated: “I expect the new arrangements to add widely to the distribution of Motown music without interfering with the company’s sales through other outlets.” Motown executives also verified that early in February 1965 they had arranged to distribute five albums via the Columbia club, and through this testing procedure Motown determined that the club distribution would not be harmful to other sales.

Motown Records logoOn August 1, a mailing to Columbia Club members will reveal the availability of Motown product. Ales stated that the new Columbia contract is one of several steps in the worldwide expansion of Motown and its publishing affiliate, Jobete Music. He noted Motown’s early decision to distribute its own 4 and 8-track tape cartridges and said that “substantial results in this area have already been achieved.” He added that the CARtridge business is growing rapidly “and will be a major factor in the company’s business by the end of next year.”

Ampex Licensed

In line with Motown’s philosophy of giving the public the music it wants in whatever form it favors, the company has licensed Ampex to distribute reel-to-reel tape. With regard to the world record market, Ales is concentrating on a thorough review of Motown’s foreign distribution. Some new licensing arrangements are virtually completed; others are being set. The review, Ales continued, “will continue for at least six months and will entail visits to the Far East, Europe and South America by Motown executives.”

Consistent with these expansion activities has been the addition of personnel to key Motown and Jobete departments. One of these appointments, of course, was Archie Levingston, veteran music man, who will seek broader exploitation of the Jobete catalog.

Ales noted that his company in 1965 had 42 chart singles and 16 chart albums. “The pace in 1966 is even faster,” Ales said.

Jobete for three years has been the top BMI award winner, and scored with 12 songs in 1965.

The agreement with Motown is obviously a plum for the Columbia club, giving them tremendous added power in the youth market, with such acts as the Supremes, Martha and the Vandellas, Marvin Gaye, Four Tops, Temptations, the Marvelettes, Smokey Robinson, Stevie Wonder and Junior Walker and the All Stars.

George Schiffer was counsel for Motown and Herbert Cheyette for Columbia in setting the deal. END

(Information and news source: Billboard; May 28, 1966)

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