Label Guide: Stax

Stax Records is an American record label, originally based in Memphis, Tennessee. Founded by Jim Stewart in 1957 as Satellite Records, the name Stax Records was adopted in 1961. The label was a major factor in the creation of the Southern soul and Memphis soul music styles, also releasing gospel, funk, jazz, and blues recordings.

In 1961 Stewart made a distribution deal giving Atlantic first choice on releasing Satellite recordings. In September 1961, Satellite permanently changed its name to "Stax Records," a portmanteau of the names of the two owners of the company: Jim Stewart and Estelle Axton. By the end of the year, a subsidiary label named Volt was founded.

Between January 1962 and December 1964, Stax and Volt released several chart hits each by Otis Redding, Rufus Thomas, and Booker T. and the M.G.'s. In Stax was at the height of their fame. Alongside Otis Redding were soul singers Sam and Dave, as well as Carla Thomas and writer Isaac Hayes who would have a deep impact on the funk music of the 1970s.

After the Atlantic distribution deal expired in May 1968, Atlantic briefly marketed Stax/Volt recordings made after the split. These recordings feature the alternate Stax/Volt logos used on the album covers on their labels, as opposed to the original Atlantic-era logos, such as the "Stax-o-wax" logo. Stax label recordings were reissued on the Atlantic label, and Volt label material on the Atco label. Gulf+Western-owned Stax/Volt releases used new label designs, new logos (including the recognizable finger snapping logo) and new catalogue numbering systems to avoid confusion among the record distributors.

Although Stax had also lost their most valuable artists, they recovered quickly in the late 1960s. Isaac Hayes became the label's biggest star, and Stax also enjoyed great success when it had the Staple Singers shift from Gospel music to mainstream R&B. In 1970, Stewart and Al Bell purchased the label back, and Stax subsisted on its own for the next two years.

In 1972, Stax struck a distribution deal with CBS Records which ultimately led to the label's decline. By 1975, all of the secondary Stax labels had folded, with only the main Stax label remaining. Stax/Volt Records was forced into bankruptcy in December 1975 and its brand name and master recordings were sold to Fantasy in 1977.