Liam Payne dropped by Universal Music just days before his tragic death

Liam Payne faced a major setback just days before his death when Universal Music dropped him.

Liam Payne experienced a significant setback just days before his tragic passing, as Universal Music dropped him from their label, The Mail can disclose.

Liam was originally signed to Sony during his time with One Direction, but in July 2016, at just 22, he signed a deal with Capitol Records, a Universal-owned label, to launch his solo career.

Liam was reportedly 'thrilled' when he secured the contract with Capitol, which was believed to be a highly lucrative agreement.

Although Capitol Records is part of Universal, a recent internal restructuring placed him under the main Universal label.

Last night, guests staying at the same hotel as Payne recounted eerie details of the moments leading up to his death, including hearing 'violent noises' and a 'scream.'

Doug Jones, a fellow hotel guest, told the BBC, "I thought they were working on the room. There was a lot of noise, like heavy lifting, like banging, a lot of loud, violent noises, I thought."

Jones continued, "And I saw hotel people going in and out of that room, so I thought they were doing work on the room."

He added, "So about 4pm, 4.30pm, I started hearing some more noise, I was still doing work, and I heard a really loud, violent scream around 4.45pm, 5pm."

Later in the evening, Universal Music Group posted a tribute to Liam Payne on Instagram, expressing how 'devastated' they were over his death.

Payne, 31, reportedly fell from the third floor of a hotel in Buenos Aires, Argentina, on Wednesday night, with medics confirming his death shortly after.

Universal Music Group's tribute read, "We are devastated by the tragic passing of Liam Payne."

They added, "His legacy will live on through his music and the countless fans he inspired and who adored him."

The message concluded, "We send our deepest condolences to Liam's family and loved ones."

Capitol Records echoed the sentiment by reposting Universal's statement.

Several sources confirmed to MailOnline that Liam had been dropped by the record label.

A source explained, "Liam's advance was massive and he didn't recoup [it]."

They added, "Out of all of the One Direction boys, Liam was on the wrong path musically."

Reportedly, the release of Liam's second album had been delayed before Universal ultimately cut ties with him.

Additionally, it was revealed that earlier this month, Liam's PR team resigned, leaving him without representation.

The resignation occurred around the time Liam's ex-fiancée, Maya Henry, initiated legal action against him, accusing him of contacting her repeatedly.

One source remarked, "It is like all of Liam's music career that he had built up since he went solo eight years ago was crumbling, there was very little left for him."

They concluded, "It must have absolutely devastated him."