Yahoo! Music (uk.news.launch.yahoo.com) report:

IRON MAIDEN manager Rod Smallwood has quit troubled music management firm Sanctuary and taken the iconic metal stars with him.

Sanctuary - which was named after an Iron Maiden song - will continue as the heavy metal group's merchandiser and has also signed the band to a new recording agreement in the US for their album A Matter of Life and Death.

Mr Smallwood, who co-founded Sanctuary in 1976 and discovered Iron Maiden in 1979, inspired their song 'Sheriff Of Huddersfield'.

He will continue to manage the group at his new company Phantom Music Management and will be retained as a consultant to Sanctuary for an initial six-month period.

"It's obviously a bit of a wrench leaving Sanctuary after all these years, but at this time in my career and with the band's ever-increasing international stature it makes total sense for me to concentrate on developing the band's huge potential in the many areas of what is now a very complex and time-consuming business," Mr Smallwood said.

Chief executive Frank Presland said he was sad to see the band and Mr Smallwood depart, but "delighted to be able to continue with the band long term as their world-wide merchandiser."

Iron Maiden are one of the biggest-grossing bands in the world thanks to successful merchandising. Distinctive T-shirts featuring their iconic mascot Eddie are worn by multitudes of fans around the world.

Sanctuary issued a profits warning in June after trading at its record label failed to meet expectations. Its other co-founder, Andy Taylor, was sacked in May following an investigation into the group's accounts.

Earlier this year, Sanctuary was saved from collapse by a £110 million rescue package to help it recover from the disastrous acquisition of Urban Records from Matthew Knowles, the father of R&B; diva Beyonce. Its share price has collapsed from a 828p high to 14p.

Sanctuary was recently the subject of bid interest from smaller rival Mama, but rejected its approach.