By Mary L. Davis and Richard B. Russell, Reuters/Ipsos-Reid U.S. stocks plunged after an analyst said Voodoo Music will continue to thrive.
Voodoo’s stock plunged as much as 10% after the firm said it is looking for new investors.
Shares of Voodoo were down 0.6% to $4.68.
Voodoo CEO Mike Jansen said in a statement the company has been in discussions with investors and that he expects to “be fully transparent” about his plans.
“I have no doubt that Voodoo will be a force to be reckoned with,” Jansen told reporters on a conference call.
“We’re not doing anything that will put us at risk, we’re just in the process of trying to figure out what our path forward is.”
Shares of Music Brands Corp, a music company owned by Universal Music Group, were down 7.2% at $49.49 in New York.
Music Brands, which has more than 5,000 employees, has been struggling to make money in the last two years as it struggles to stay afloat in a volatile music business.
Music brands have seen an average annual revenue decline of 14% over the last five years, according to the Music Brands Association, and that number is expected to fall further over the next few years.
Music stocks were among the worst performers in the S&P 500, with the Semiconductor Research Corp. down 5.9%.
The Nasdaq Composite index of small-cap stocks was up 0.2%.
Shares of U.K. music retailer Topshop rose 3.5% to £2.65 in London.
The retailer is the only major music retailer in Britain to survive.
The stock gained 12.2%, to $3.70, after the company said it expects to cut more than 1,000 jobs in England.