According to the March 2nd, 1963, Billboard magazine, Sutton Records was launched as a subsidiary of Sutton Enterprises by Bob Blythe, with "substantial investor" Manny Kopelman (Interdisc, Omega, Tiara) and Danny Weston as vice-president in charge of sales.

Bob Blythe was former president of Tops Records. Sutton was intended to be a low-budget record company, aimed mainly at rack jobbers, and undercutting retail prices. The article announced that operations began with an initial issue of 255 recordings licensed from Music Craft, Omega, and Tiara, "among others."