Is the stalwart of the sScottish agency scene set to close its doors?
Chester: is he calling it a day?
As Adline went to press rumours were rife throughout the Scottish ad industry that Faulds, once Scotland’s biggest ad agency employing more than 100 people at its height, could be set to close its doors and relaunch in the coming weeks under a new guise.A new company name was registered at Companies House in mid-August, called Faulds Limited, by Faulds’ directors which many believe will allow them to facilitate the restructure.
Sources at the agency denied this was the case, saying that the new name was registered to allow them to handle conflicting business and also to stop former owner Jim Faulds from re-registering the name.
The rumours surfaced as it came to light that a potential deal, which was being put together by Faulds’ managing director David McGlone and three other agency directors, and would see them buy out the interests of chairman Dennis Chester, would not be going ahead as widely expected.
It has also been suggested that the media division of the company could now be taken over by Spirit Media Scotland, a rival Edinburgh media independent.
Troubles started at the Edinburgh advertising agency shortly after founder Jim Faulds sold out to Chester around two years ago.
Since taking over Chester has overseen the opening and closure of Faulds’ London office and the departure of a number of agency staff and clients.
In the last year alone, Faulds has lost major clients such as The Royal Bank of Scotland, Kwik-Fit and the media planning and buying business for Auto Trader.
According to industry sources Kwik-Fit had been paying the agency for work up until 1 September, but speculation now suggests that the agency has been forced to factor its debts.
The agency was recently involved in a competive pitch for a piece of Direct Line business, however the agency failed to convert the business, which many have seen as the death knell of the agency.
At the close of business on Tuesday it was still not clear exactly what was happening at the agency as chairman Dennis Chester and managing director David McGlone were both unavailable to comment.
Jim Faulds, who launched the agency around 17 years ago, said: “The only thing I have to say about the situation is that it saddens me greatly.”