Liam Payne suffered a huge blow just days before his tragic death – he was dropped by his record label Universal Music, the Mail can reveal. 

Originally signed to Sony as part of One Direction, Liam penned a deal with Capitol Records, a label owned by Universal, in July 2016 when he launched his solo career at just 22 years old.

Liam was said to have been ‘thrilled’ when he signed to Capitol in what was understood to have been a very lucrative deal.

The label is a subsidiary of Universal, but in the company’s recent reshuffle he came under the main label.

This evening, Universal Music Group posted an image of Liam Payne on Instagram saying they were ‘devastated’ about his death.

Payne, aged 31, fell from a third floor of a hotel in the Argentinian capital of Buenos Aires on Wednesday evening, before medics confirmed his death. 

The Universal Music Group tribute read: ‘We are devastated by the tragic passing of Liam Payne.

‘His legacy will live on through his music and the countless fans he inspired and who adored him. 

‘We send our deepest condolences to Liam’s family and loved ones.’

Capitol Records reposted the statement as well.

Multiple sources have confirmed to MailOnline that the singer was axed by the record label.

A source said: ‘Liam’s advance was massive and he didn’t recoup [it].

‘Out of all of the One Direction boys, Liam was on the wrong path musically.’

It is understood that the release of his second album was put on hold prior to Universal dropping him. 

Meanwhile, it can also be revealed that Liam’s PR resigned earlier this month, which left him without any publicity representation.

The resignation came as Liam’s ex-fiancé Maya Henry began legal proceedings against the singer after accusing him of repeatedly contacting her.

One source said: ‘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.

‘It must have absolutely devastated him.’