Erykah Badu Claims Universal Motown Folds, Execs Respond

Erykah Badu sent the music industry into a fury yesterday announcing that her record label Universal Motown is defunct, but now comes news that the story was fabricated.

Badu tweeted "Motown folded," to her over 300,000 followers Wednesday (June 8) afternoon. Adding more credibility to her words is the fact that label head, Sylvia Rhone, stepped down from her post in late May, but sources close to the situation are refuting the singer's claim. "They are searching for someone to bring in a senior creative role," a source told Billboard. "If it's someone that's really creative-oriented, then it might be a different title, but if they find someone creative with business qualifications, then it could be president."

Since Rhone left, general manager Pat Monaco has been running things, but the label previously announced that they have every intention of hiring a replacement. "We will soon announce important additions to the staff and will further invest in building its artist roster so Motown can continue to bring to market the highest quality music that is best positioned to succeed artistically and commercially," read a statement.

Badu, however, appears to be unfazed by Billboard's discovery, but later recanted her original tweet. "There must have been a better verb I could have used. 'folded' seems a little ...I don't know, cowardly, huh? honest mistake," she wrote.

The 40-year-old has been signed to Universal since dropping her triple platinum debut album 'Baduizm' in 1997.