PYE RECORDS HISTORY .............. The Pye Company originally manufactured televisions and radios. Its main plant was situated off what used to be Haig Road, in Cambridge, and it entered the record business when it bought Nixa Records in 1953. In 1955, the company acquired Polygon Records and merged it with Nixa Records to form Pye Nixa Records. In 1958, Pye International Records was started. The company licensed recordings from American and other foreign labels for the UK market, including Chess, A&M, Kama Sutra, Colpix, Warner Bros., Buddah, 20th Century, and King. It also released recordings from British artist Labi Siffre which were produced outside the company.
In 1959, Pye Nixa became Pye Records and ATV acquired 50% of the label. By late 1965, the parent company were trying to get out of the record business, so ATV bought the other half of the business in 1966 thus becoming sole owner from then on.
I'd guess that the Pye Company weren't doing too well with their main TV & radio manufacturing business (everybody buying cheaper imported transistor radios, etc.) so they got out of their 'side business' to just concentrate on core issues and thus try to revive their manufacturing facility.