Leagas to open new ad agency

Chairman of recently collapsed agency Leagas Shafron Davis (LSD), Ron Leagas, is expected to form a new agency possibly handling the Royal & Sun Alliance’s Invest On Line and the Sanyo accounts.

At the same time, former managing director Mike Davis is thought to be moving to EURO RSCG Wnek Gosper, which is tipped to pick up the Home Office business previously at LSD. The COI says it is “monitoring the situation.”

Leagas is already understood to be working on the Royal Sun business. Sanyo’s head of marketing Peter Eldon says: “I will wait and see what the new agency is like. I was very pleased with the TV work last year, and I plan to do more this year.”

However, former LSD client Zanussi has already launched an agency review.

Leagas says: “I have no intention of sitting on a beach for a long period of time.”

A new advertising venture is expected to be set up within the next few months.

One source close to Leagas says he may well try to bolt on his new agency to a direct marketing outfit and offer ‘integrated’ services.

The COI has a long roster of agencies, but only EURO RSCG and LSD handle Home Office work.

One source close to LSD describes it as “very likely” that the work will go to EURO. A decision is expected within three weeks.

Davis says: “It’s too soon to know what’s next.”

LSD went into receivership two weeks ago. Its receivers are BDO Stoy Hayward which were appointed by the company’s chief creditor, bankers Coutts.