Record Labels That Disrupted Norms Then Went Bankrupt

Operating out of a converted movie theater in Memphis, Stax Records birthed the gritty, horn-drenched sound of Southern soul through icons like Otis Redding, Isaac Hayes, and Sam & Dave. Despite defining 1960s Black popular music, the independent label suffered devastating blows from unfavorable distribution agreements with Atlantic and the sudden death of Redding. Mismanaged finances, bad bank loans, and severe distribution collapse ultimately forced Stax into involuntary bankruptcy in 1975.