When the Dakar label folded in 1976, Davis formed Chi Sound Records, continuing to find success with Walter Jackson and having a major hit single in 1978 with Gene Chandler's "Get Down". After a distribution deal with 20th Century Records ended in 1981, Davis used independent distribution for two years before closing Chi Sound down. The company had a brief revival in 1989-90, before re-opening in 2007 and remained active until Davis' death. On February 11, 2013, Carl Davis was honored during the 55th Grammy Awards, along with several other music business personalities in the memorial pictorial tribute.