This weeks Bookseller has a bit about Sanctuary's woes and I think what the article on the main page referred to a few days back is connected.
Apparently there are a grand total of 3 people left working for Sanctuary's publishing division, they're taking a battering, possibly legal, from several high profile authors (unnamed in the article, but they're probably the one's previously mentioned in the papers) and basically, they're unofficially buggered. Chrysalis are part of the same article and in the same boat i.e. soon to be sold at a hefty loss.
Does any business minded soul know the consequences for the Sanctuary label if the publishers go under? Methinks this, not the music side, is the main source of their problems.
Although, it maybe a case of 'Get out Morrissey, while you still can.'