"The departure of two Directors in the summer of last year put us in a position of limbo. Whilst they remained shareholders, although we could function on a day-to-day basis, we were prevented from making the necessary strategic and investment decisions which would secure our future. Failure to resolve these issues created cash flow difficulties, leaving us with no choice and very regrettably 1576 has had to close."
Reid continued; "1576 was made up of many talented individuals who made this a great company. I am sure that they will be scooped up by other companies very quickly and I’m determinedly supporting these efforts. I’m also very grateful for the support I have received from clients, who have enjoyed good times within the 1576 ‘fold’, and from industry colleagues over the years.
“This is a very sad occasion. The current process allows us to achieve a measured closure in very difficult circumstances. Nonetheless, I remain proud of 1576’s achievements and firm in my belief that our cultural values for strategic thinking, creativity and quality of service will continue to exist through the expertise and professionalism of the people who have worked here and who will now take their skills elsewhere.”
1576 was established nearly 14 years ago and was one of Scotland’s longest established creative agencies. It held over 20 high profile clients on its books and had a strong track record for winning both UK and Scottish awards. It won IPA Effectiveness Awards for 16 different clients, two IPA Grand Prix Awards, awards from the Marketing Society each year it entered and won several accolades at the industry Oscars, D&AD.
In 1986, David Reid was voted Most Promising Beginner in British Advertising and in 2005, he was voted MD of the Year for Advertising by his peers in Scotland. He was the sole director of 1576.
The company’s last audited turnover stood at £3.83m. The majority shareholding was held between David Reid, Adrian Jeffery and Gary Smith.