as one of the keynote labels of the early 1980s independent scene was confirmed by the success of a budget compilation album compiled by Alway and released at Christmas 1982. Retailing for 99p, Pillows & Prayers topped the independent charts for several weeks. The label also released several albums from Adrian Sherwood and his ON-U Sound Label in the early 1980s.

Cherry Red continued to sign contemporary artists but increasingly moved into the reissue