Part of advertising agency Yellow M goes into receivership

Part of Yellow M, the former advertising agency of the Conservative Party, has gone into receivership.

Yellow M Newcastle ceased trading last week and 25 staff have been made redundant. Kroll Buchler Phillips is winding up the company, founded by Mike Dethick in 1992.

Healthfood shop Holland & Barrett, hardware and gardening retailer Robert Dyas, and Rowland Chemist are among the nine advertisers left without an advertising agency. Holland & Barrett spent &£2.7m on advertising last year (AC Nielsen MEAL), including TV activity.

Another key account, CarLand, recently reviewed its business, and Yellow M declined to repitch. Martin Tait Redheads of Newcastle picked up the business recently.

Sister company Yellow M Edinburgh is unaffected by the receivership and is proceeding with a management buy-out. Yellow M Edinburgh managing director Ian Wright says: “Although the two agencies were part of the same group, they were separate companies, under separate ownership and there was little contact between them.”

Wright adds that his office is not taking on any clients or staff from the Newcastle division. Yellow M Edinburgh recently won a place on the Scottish Widows agency roster.

Dethick, a former creative services director at McCann-Erickson Bristol, was unavailable for comment. The agency made headlines when it was appointed to handle advertising for The Conservative Party last year.

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