Jem operated Passport Records on its own, thereafter. Jem Records went public in 1984, with its initial public offering meeting with mixed success, resulting in a reduction in the offering price. At the same time, the import and distribution activities of Jem Records were negatively affected by the loss of a copyright lawsuit brought by T.B. Harms Music. Prior to this judgement, Jem Records had not been paying royalties on imported records. Jem Records went from reported net income of approximately $391,000 on sales of approximately $14 million in 1984 to a loss of approximately $225,000 on sales of approximately $16 million in 1985. In early 1987 Passport Records separated from Jem Records, to be led as a separate operation by Marty Scott. Tenenbaum and Grossi left soon afterwards. They sold their shares to John Matarazzo, who became chairman and chief executive officer, owning 40% of the equity. Also in 1987, Jem Records signed a letter of intent to sell its distribution and record operations to Enigma Records. In 1988, Enigma declined to complete the transaction. Jem Records subsequently went bankrupt, in 1988. In 2013 Marty Scott resurrected the label, as Jem Recordings, with a focus on signing new artists and licensing older recordings for release under the label. The first release of the reconstituted label was announced as The Bongos' "Phantom Train", recorded in 1986 and remixed in 2013 by Richard Barone.