The independent label was started in the rear of the pre-existing Red Eye Records Store In 1985. The Red Eye Record Label ran independently until 1990 when it entered into a joint venture arrangement with Polydor Records. After several years of success the joint venture ceased at the end of 1996 with Red Eye MD John Foy retaining the label name and company structure. Polydor continued with much of the Red Eye catalogue but eventually retained only The Cruel Sea from the roster of Red Eye Artists. Polydor is part now of the Universal Music Group. The Australian Red Eye Records still exists as a music retail business in Sydney.