The Verve threaten to withhold next EMI album

The band is threatening to withhold its next album until it receives assurances about the troubled company's financial health and a commitment that the record will be marketed competitively.

A delegation of band managers led by Jazz Summers - representing The Verve and Snow Patrol - is due to meet Guy Hands, the new boss of EMI, in Kensington today.

Mr Hands's private equity firm Terra Firma bought EMI for £3.2billion last year and has threatened to slash marketing budgets and cut 2,000 jobs from the 5,500-strong workforce.

He is expected to unveil his plans to staff and the industry at the same meeting. But his approach has angered many of the label's top bands.

Radiohead and Sir Paul McCartney have already walked out in protest, Coldplay are thinking about doing the same and Robbie Williams is on strike.

Now The Verve - who reformed to create their first album since 1997's Urban Hymns - may not deliver it in June as scheduled.

Mr Summers said he would advise the band to do the same as Robbie Williams when he meets them later this week.

"Why would we deliver a record when EMI is cutting back on the marketing and is in financial difficulty? I am going to tell Guy Hands I want assurances," said Mr Summers.

He was angry that Mr Hands wants to reduce the advances paid to artists, saying: "He has not got a clue of what this business is about. You only have big advances because you are not getting any royalties."

He said performers could sell as many as three million albums without seeing a single royalty payment because the value of CDs has fallen while marketing and distribution costs have risen.

Yesterday it emerged that Mr Hands had sent a placatory note to EMI artists and agents but failed to conceal their email addresses in the "bcc" blind copy box. Consequently they can all now co-ordinate their protests.

Hands accused the music industry of "burying the creative process in bureaucracy" and pledged to move away from a reliance on CD sales from a huge roster of artists, many of them loss-making.

Yesterday he managed to secure another £250 million from investors in return for 16 per cent of the equity.

It also emerged that he had pumped £200 million more of Terra Firma's money into buying EMI than originally intended.

As the credit crunch began to bite in the summer, Citigroup asked him to increase his equity stake from £1.3 billion to £1.5 billion.