According to filter-mag.com:
Sanctuary Records To Cease U.S. Operations
According to a source within the company, Sanctuary Records' U.S. label will cease to release new material this starting this summer. Similar to a recent move at V2 Records, Sanctuary will only continue to run its catalog and licensing operations. All affected staffers, which includes marketing, publicity and most sales personnel, will be let go by June 30th. The label will still work the albums they recently released such as Idlewild's Make Another World, as well as upcoming albums from Tegan And Sara and former Cranberries singer Dolores O'Riordan. The label is home to artists from Morrissey to Motorhead.
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Alain also re-stated that he has written some really amazing music that he is confident Moz will very much like.
(I exchange mail with Alain every now and then and he is a really great guy).