Apparently it's horribly true. Though it hasn't been confirmed by the label yet, both Time Out Chicago and The Tripwire are reporting that the Illinois indie has given up the ghost and closed. Touch and Go also distributes a ton of ace indie labels like Jade Tree and Merge, so this could affect more folks than just the label's own bands (which includes Atlanta's own awesome All The Saints).
The rumor right now is that the entire staff of 20 has been let go. Click here to read other blogs' take on the matter.
UPDATE: The Chicago Tribune says that the label/distributor is "is drastically shrinking its business, cutting ties with 20 independent labels and laying off an unspecified number of employees." Basically Touch and Go is going to stop manufacturing and distribution for all it's affiliated indie labels, though they will remain an indie label with a very, very small staff. Read the whole statement here.
