Speculation of Robson Brown's potential 'media partner' spreads
Speculation is spreading around the North East about what has been going on with Robson Brown, the long running Newcastle advertising agency.
The agency, as part of Round 2 UK group, was placed into administration yesterday and announced that it was looking to work with "a well established media partner" having lost its credit insurance as a result of entering into administration.
The speculation suggests the company's media planning and buying department could be in the process of striking a deal with a North West media agency with many believing that Feather Brooksbank would be that agency having worked together on the Silent Night account although others have also been mentioned such as MediaVest.
That has not been confirmed but the agency will want to do all it can to safeguard relationships with clients including Flymo.
One notable North West media buyer told The Drum that Robson Brown was unlikely to find a deal with any of the region's networked media agencies
According to The Journal in Newcastle, Alan Brown and Stuart Robson, the founders of the agency who sold out to Round 2, have still not been paid in full and are the agency's biggest creditors.
Questions are also being asked about the financial predicament that the agency and its fellow Round 2 UK group agencies were placed in following the statement released yesterday.
That statement read: “The financial structure which Round 2 adopted was based on leveraging significant debt into those businesses has been wholly inappropriate and totally unworkable. This has created unsustainable financial stress into the group which has resulted in the group going into administration.”
It is also understood that staff have been asked to continue to come to work, despite only being paid up until tomorrow and that several have declined.
Meanwhile, fellow Newcastle marketing agency Black & White has issued a call to the PR staff at Robson Brown to get in touch as it looks to expand its service offering for its current clients, although at the moment it is not sure just how many it would like to employ.
Updated: Feather Brooksbank has contacted The Drum to quash speculation that it is speaking to Robson Brown about a media partnership saying that it has not been in contact with the agency.