American distributor Spectra goes bankrupt taking with it Kingsway Inc's profits.

AN AMERICAN distribution company, Spectra, has gone bankrupt, taking with it Kingsway Inc's first year's profits. Kingsway Inc was launched last year in an attempt by the Eastbourne based record company to gain a foothold in the US market for British artists. "The policy we set for year one was not to fail, and we haven't," Kingsway's Chief Executive John Pac told Cross Rhythms at the Christian Booksellers Convention in Bournemouth. "In year two we are looking to consolidate into a small niche company dealing with English praise and worship."

Pac said the collapse of Spectra should not do long term harm to the company, though he did not underplay the blow to Kingsway's plans. "We spent the first year just gaining a fingernail hold on the American market. We started off in January with enough money to run a reasonable marketing campaign for the first half of '93. That money has been lost in this bankruptcy. It means financially we have gone back a year. But it's not a disaster, just a disappointment."