Independent label TVT Records will file for bankruptcy this week, reports Billboard.

The company was formed in 1985 and rose to prominence in the music industry after releasing work from Nine Inch Nails and German rock band KMFDM.

TVT is currently known as a home for hip-hop artists, with Lil Jon, Pitbull and Ying Yang Twins on the books.

The label has been involved in recent legal battles, including a suit against Island Def Jam over a Ja Rule album that IDJ prevented TVT from releasing in 2003.

TVT was also forced to pay more than $9 million in damages to a Miami label over rights to an album from Cuban-American rapper Pitbull.

Pitbull asked his fans not to buy his latest album The Boatlift after feeling that TVT had not supported him.

"I'm out here working like a slave, doing things that other artists don't even know how to do. A label's there to further and promote your career, but it feels like they just keep holding me back," the rapper said in a recent radio interview.

A source close to the label revealed that TVT artists might soon be picked up by other record companies.

"Yo Gotti is a prime candidate as a free agent to go. He's done his part as an artist, and although he's a little under the radar and people in New York don't know him that well, other majors like maybe Def Jam or Universal, whom he had a previous deal with, might want to pick him up," the insider said.

Company head Steve Gottlieb said the bankruptcy "is not the end of TVT".