It has been announced that the Leeds based Brass Agency has gone into administration. The agency, which represents a number of high-profile clients, has been struggling in recent months as a result of the Covid-19 pandemic.
A number of the agency’s employees have already been made redundant, and it is thought that the remainder will be made redundant in the coming weeks. This is a devastating blow for the creative industry in Leeds, and will no doubt have a ripple effect on the wider economy. Our thoughts are with all those who have been affected by this news.
Brass Agency in Administration
Brass agency enters administration, it comes despite a series of major client wins for the company, which in October said it had won £200k of business just from Yorkshire clients. It had also signed 6-figure briefs with Slumberdown and Tofoo Co, earlier this year.
According to its published accounts, the agency had a turnover for the year ending 30th September 2018 of £12.8m, with £535k coming from overseas. That was up from the £12.5m in 2017.
Its cost of sales had increased to £8.5m, with administrative expenses at £4.7m.
Operating profit before tax had fallen from £76,573 in 2017, to a loss of £324,255 for September 2018.
RSM Restructuring Advisory Appointed
RSM Restructuring Advisory LLP has confirmed that Gareth Harris and Keith Marshall were appointed Joint Administrators of Brass Agency Limited today.
They said that all 60 members of staff have been paid up to the date of the end of trade yesterday, when they were all made redundant. Their claims will be dealt with by the Redundancy Payments Service.
The adminstrators explained that Brass had faced “increasing cash flow pressure during recent months.” As a result the Directors have had sought to secure additional finance and sell the company’s freehold property; however, this was not possible in the time available.
“Despite the best efforts of the Directors to seek alternative funding and to sell the Company’s freehold property at the level required to eradicate the Company’s cash shortfall, it was unfortunately not possible to achieve in the time available. All employees have been paid up the date of their redundancy,” said Gareth Harris, RSM Restructuring Advisory Partner and Joint Administrator
Inc & Co acquires Brass Agency out of administration
Inc & Co, a public relations firm, has announced the acquisition of Brass Agency, a rival firm that has fallen into administration. The move comes as a surprise to many in the industry, as Brass was generally considered to be one of the leading PR firms in the country. Inc & Co’s CEO said in a statement that the acquisition would help to strengthen their position in the market and provide them with an opportunity to expand their client base.
He also said that they would be keeping on most of Brass’s employees, as they are “talented and experienced professionals.” The acquisition is likely to have a major impact on the competitive landscape of the PR industry, and it will be interesting to see how Inc & Co’s rivals respond.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.