AceShowbiz - Stormzy reportedly threatened to walk out on Atlantic Records after it emerged chief Ben Cook attended a party in blackface.
The music mogul stepped down from his position on Wednesday, October 16, seven years after he attended a bash as a member of hip-hop group Run DMC, wearing the "offensive" face make-up.
In a statement he announced that he was leaving the firm with "immediate effect," adding: "I am devastated that this mistake has caused upset and has called into question my commitment to diversity, equality and inclusion, values which I have championed throughout my career."
Cook was responsible for launching the career of Ed Sheeran, and teamed up with grime star Stormzy to create his own Merky Records imprint. However, a source told Britain's The Sun newspaper the "Vossi Bop" star was furious when he found out about the incident, and had told parent company Warner Music that he wouldn't stand for it - and would even quit the label.
"When Stormzy found out what had gone on, and that he had been allowed to stay, he was furious," they said. "He stepped in and made it clear he would not be prepared to keep working with them if Ben stayed, and also that he might go public with the details of why."
"He clearly saw this as a major issue and felt he had a responsibility to use his influence to highlight it - and to ensure incidents like this are taken seriously."
They added: "He absolutely believes this was the right thing to do."