Brand Experience

Manchester Marketing Firm Enters Administration

24 March, 2024

In a challenging turn of events for the marketing industry, a Manchester-based marketing firm, known for its expertise in below-the-line (BTL), shopper, and digital marketing strategies, has been pushed into administration. The firm, which has been a player in the marketing landscape, is now under the administration of Leonard Curtis due to debts that have accumulated to over £1 million.

The situation came to a head as detailed in a report from Companies House. It highlighted a significant blow to the firm’s financial health when its largest client abruptly shifted their work elsewhere. This move was made without notice, leaving the firm with a staggering projected income loss of approximately £3.7 million.

Reflecting on the company’s financial journey, the year ending December 31, 2021, showed promising figures with a turnover of £6.5 million and profits of around £213k. However, the following year saw a decrease in turnover to £4.7 million and profits reduced to £170k. The downward trend continued into 2023, with turnover for the 10 months leading up to October 31 plummeting to £1.5 million, resulting in a loss of about £520k.

Compounding the firm’s financial troubles is an outstanding director’s loan exceeding £600k as of September 30, 2023. Additionally, the administrators forecast that the sum of unpaid wages and holiday pay owed to staff members will reach £28,743.

During the pandemic, the company sought financial relief through two Coronavirus Business Interruption Loans totaling £500k, received in October 2020 and October 2021. Despite these efforts, financial stability remained elusive.

The company’s leadership, Directors Ian Morgan and Nicola Thompson – who are also the sole shareholders with Thompson holding a commanding 95% of shares and Morgan the remaining 5% – faced tough decisions. The report disclosed that all employees were laid off after it became apparent in September that there was a “significant risk of insufficient funds being available to pay staff wages.”

Established on June 24, 2002, the firm operated out of Blackfriars House in Manchester. At the time administrators stepped in, the company employed 15 staff members. The firm was recognized for its proprietary “The Method” approach to marketing – a seven-step collaborative process designed to enhance clarity and craft tailored solutions for brands and businesses.

As for the outstanding debts, the company’s largest creditors include London-based creative sales promotion agency Opia Ltd, owed just under £395k, and HSBC Bank with an outstanding amount of £307k. The firm’s client roster had featured notable names such as Pringles, Bodyform, and O2.

This development serves as a stark reminder of the volatility within the marketing sector and underscores the importance of robust strategies like Gym Marketing and More Gym Members to ensure sustainability and growth. For businesses in this sector, such as those specializing in Advertising For Gyms or Gym Lead Generation, it’s crucial to maintain agility and adaptability in client management and financial planning.

In this digital age where platforms like Facebook Ads offer expansive reach for client campaigns, marketing firms must stay ahead of trends and be prepared for sudden shifts in client relationships. The fall of this Manchester marketing firm is a cautionary tale that even well-established entities are not immune to market fluctuations and client dependencies.

The industry will be watching closely as Leonard Curtis navigates the administration process. For those seeking insights into effective marketing strategies or looking to bolster their own practices – whether through innovative Gym Lead Generation or dynamic Advertising For Gyms – this scenario emphasizes the need for resilience and diversification in client portfolios.

As the story unfolds, More Gym Members stands as a resource for those within the marketing industry looking for guidance and strategies to thrive in an ever-evolving landscape.