In 2008, TVT went bankrupt and was forced to sell its recording assets to The Orchard. Consequently, "My Dear" lacked the proper promotion required to succeed and Schoolden and Lohrbach both left the band shortly thereafter. Despite the small setbacks, the remaining members continued writing new material. Around September 2009, New Years Day posted two brand new songs on MySpace. When asked about the upcoming EP, Costello remarked, "The EP is in its demo phase right now and we are still writing for it and recording it at the same time. The EP should be out in the spring of 2010."