Mid-period
Following an unsuccessful attempt to run an offshoot label for Warner Brothers (Elevation Records), McGee regrouped Creation and immersed himself in the burgeoning dance and acid house scene starting in the late 1980s. Those scenes had influenced Creation mainstays such as Primal Scream and Ed Ball, as well as newer arrivals such as My Bloody Valentine.
While Creation Records' releases at this time tended to be critically acclaimed, they tended not to be major commercial hits. Creation had run up considerable debt that was only held off until he sold half the company to Sony Music in 1992. There were reports of McGee's escalating drug use, as well as numerous and conflicting reports of the label being nearly bankrupted after funding the two-year long recording of My Bloody Valentine's 1991 Loveless LP.
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