Drag City was formed in 1989 when Koretzky, who was working for a record distribution company in Chicago, contacted the band Royal Trux, after hearing their first album, with the offer of releasing a single.[1]Hero Zero was soon followed by Demolition Plot J-7, the second release by Pavement.[2][1] The first album release on the label came later the same year—Twin Infinitives, the second album by Royal Trux.[1]
The label released the US version of Scott Walker's Tilt in 1997, after the label approached him wishing to give the album a US release.[3] Walker described releasing the album on the indie label as "an experiment".[3] Several members of Drag City's staff have played in bands; press-chief Gene Booth played keyboards and guitar in USA, and Booth, head of sales Rian Murphy, and founder Dan Koretzky all played in Mantis.[4] Booth was also a member of Chestnut Station.[4]
In recent years, they have expanded their catalog to include alternative comedy releases, with recent outputs from Fred Armisen, Neil Hamburger, and Andy Kaufman among others, and reissues, notably by Gary Higgins and Death.[5][failed verification] In 1997, Drag City began publishing printed works such as the literary magazine The Minus Times and Neil Hagerty's novel Victory Chimp.[6] The label distributed the 2013 documentary The Source Family.[7] After years of refusing to release its artists' music on streaming platforms, the label finally made its music available for streaming via Apple Music in July 2017.[8]
