Pitchfork

Get ready for V2 v. 2.0: leaner, meaner, and intrepidly backward-looking, with 90% fewer new releases and 100% fewer employees.

According to a Billboard.com report and verified by a V2 publicist, V2 North America parent company Sheridan Square Entertainment (which purchased the label from its founder, Virgin entertainment mogul Richard Branson, in 2005) has, effective January 12, initiated plans to restructure the imprint's entire operation.

As of last Friday, V2 no longer releases new material from its artists, focusing almost exclusively on maintaining its back catalogue (a task to be overseen by Chief Operating Officer Michael Olsen in Nashville) and pursuing digital ventures. The only exception is the gospel genre, to which V2 will continue contributing new records.

Restructuring also meant terminating all of V2's employees, including label president Andy Gershon. "I wish the best for everybody that's still left at V2 and Sheridan Square," Gershon told Billboard.com, which estimates 35 people lost their jobs this past Friday. A publicist from V2 declined to comment on the situation.

Artists on the V2 roster-- which include alternative radio heavyweights like the White Stripes, the Raconteurs, the Crystal Method, and Moby-- now return to the auction block; V2 will, however, retain back catalogue rights for these acts.

In the case of the Stripes and the Raconteurs, though, things are slightly different. According to their publicist, the band's contract with V2 has already expired; Meg and Jack are presently in negotiations with other labels, seeking a distributor for their own imprint, Third Man Records, for future releases.

Branson started V2 in 1996, having sold Virgin Records-- a cornerstone of his billion-dollar Virgin entertainment empire-- to EMI in 1992. As mentioned, he sold the North American branch of V2 to New York-based Sheridan Square Entertainment in November 2005. The fate of V2's European branch is unknown at this time.

Other V2 acts of note include the Blood Brothers, Gang of Four, Ray Davies, Paul Weller, Grandaddy, Isobel Campbell, Mercury Rev, Madness, Stina Nordenstam, the Mooney Suzuki, Underworld, Blood Meridian, Ane Brun, and recent signees Alkaline Trio.

It's unclear how the restructuring will affect affiliated imprint Luaka Bop, David Byrne's globe-trotting label that has served as home to several of his solo releases, as well as new discs and reissues from Os Mutantes, Tom Zé, Zap Mama, Nouvelle Vague, and a host of others. Luaka Bop had two releases in the pipeline for 2007: a compilation titled What's Happening in Pernambuco - New Sounds of the Brazilian Northeast and a new album from Kassin + 2. Right now, there is no word on when or if these records will be released.