The future of Faulds Advertising is in doubt following a string of account losses. It has now called in financial advisers to see if the struggling Scottish agency can balance its books.
Managing director David McGlone says the agency has called in experts to take an “objective” look at the business and to recommend courses of action. He does not rule out administration or liquidation for the Edinburgh-based agency and says a decision will be taken in a week.
The agency has staggered through a series of setbacks and losses over the past 12 months, including the defection of creative director Billy Mawhinney to J Walter Thompson and the poorly timed acquisition of London agency Malcolm Moore Deakin Hutson. The agency was closed in June (MW March 26) after a year under Faulds’ ownership.
Faulds is owned by chairman and chief executive Dennis Chester. He spearheaded a &£2m buy-out with 11 other managers from founder Jim Faulds in December 2001 (MW December 12, 2001). Faulds founded the business in 1985 after leaving Harrison Cowley.
The agency continues to hold onto Autotrader’s &£2.5m advertising account, although the magazine group moved its media buying and planning from Faulds to MediaCom Scotland in July.
The agency is also on the roster of the Scottish Executive and handles its healthy eating campaigns.