Media owners left ‘severely’ out of pocket as computer firm goes bust
Media owners are believed to have been left “severely” out of pocket following the closure of the computer maker, Granville Technology Group. The Lancashire-based firm, which produced Tiny and Time PCs, was running an extensive press advertising campaign when the business went into administration.
An industry insider, commented: “At the time the announcement was made (about going into administration), the firm was running a major advertising campaign in the broadsheet nationals. These deals will all have been arranged on a credit agreement, so they will undoubtedly be owed significant monies.”
The firm’s incumbent marketing and media agencies, CheethamBellJWT and Mediaedge:cia Manchester, respectively, are believed to have been unaffected by the collapse, however, Granville took the majority of its work, both creative and media, in-house in 2002.
Mediaedge has worked with the group for six years, but a refusal to work without being paid up front saw a change in its role four years ago. Meanwhile, CBJWT was appointed in 2002 to handle branding at the time of the launch of The Computer Shop stores. During their respective tenures, both agencies are believed to have worked on the firm’s £10million above-the-line account.
A spokesperson for CBJWT confirmed that despite being retained by as the firm’s above-the-line agency, it hadn’t produced any work for the client in a number of months. Mick Style, managing director of Mediaedge:cia, was also able to dismiss speculation that his firm was owed money. He stated: “We only handle a very small proportion of the Time and Tiny media account due largely to the in-house team’s close contacts with national media.”
Around 1,500 jobs have been lost at the Burnley-based firm after it had amassed more than £30m of debt, and was making monthly losses of between £1m and £2m since the start of the year. Administrator, Grant Thornton UK LLP, has ruled out the sale of the company as a going concern, stating that despite interest in the Time and Tiny brands, it was the group’s properties that had generated the most interest.