CRAIG David, the 22-year-old singing sensation from Southampton, is a top music star linked to a famous record label with debts of £8.5m.
Telstar Records, which had an annual turnover of £28m, has gone into administration in order to protect creditors.
R&B pop artist Craig, who was born and raised in the city, isn't affected by the financial troubles as he is under the wing of Wildstar, part of the unaffected Telstar Music Group.
The pop artist, who is a keen supporter of the Saints, has a string of hits like Walking Away and Rewind under his belt.
Telstar, in its 22nd year, also counts The Cheeky Girls, Mis-Teeq and The Hives among its artists.
Neil Palmer, co-chairman of Telstar Music Group, described events as a "very sad day".
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