The directors of marketing services group Media Square, and now MSQ Partners, have defended themselves amidst criticism of the running of the now defunct group and the handling of its affairs, pointing the finger at the founding management team for its number of acquisition deals.
The newly formed marketing services group, MSQ Partners, was created at the end of 2011 following Media Square’s bank’s refusal to offer the financial assistance that it had requested, with debts of around £26m.
This led to an £11m acquisition led by Media Square executives Roger Parry, Peter Reid, and Dean Wright and the formation of MSQ Partners, with companies including CST The Gate, Smarts, IAS B2B and Illuminas.
A report entitled “Media Square Laid Bare” has been published by Fintellect Publishing claiming that so many mistakes were made by the company during its 11-years including a number of ‘misjudged acquisitions’ with over 70 businesses bought at a cost of £105m.
A spokesperson for MSQ Partners, commented on the claims of the report, agreeing that mistakes had been made by the founding management team of Media Square; “It is absolutely right that the problems date back to 2005 and the misjudged and badly executed acquisition spree executed by the original management team of Media Square. However, what is equally correct is that, post 2007, the focus was on disposals and strengthening the Group, and today all agencies within MSQ Partners are strong, profitable and have a proven track record.”
An introduction to the report has been republished by The Drum.