When radio plugger Guy Holmes couldn't find interest from record companies for "I’m Too Sexy" by Right Said Fred, he released it himself, resulting in a worldwide hit. This success led to the founding of Gut Records, which signed acts like Space and Aswad, growing into a top UK independent label with artists like Tom Jones and Crazy Frog. Its dance imprint, Gusto, achieved international success with hits such as "Out of Touch" by Uniting Nations and "Love Don’t Let Me Go" by David Guetta vs The Egg. In 2008, Phoenix Music International acquired Gut Records' back catalogue.

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