Mega Profile, the large format banner advertising company, is poised to go into receivership after failing to find a buyer.
Mega Profile’s directors had been hoping to secure a last-minute deal with Clear Channel, which would see the company and its sites taken over by the US-owned outdoor giant (MW July 1).
However, it is understood that because of the size of Mega Profile’s debt, Clear Channel has been advised not to proceed with the deal. It is now expected to acquire a number of the company’s sites from the receivers to help offset Mega Profile’s debts. These sites are likely to include the flagship sites on Birmingham Town Hall and the M5.
The outdoor industry has been shocked by the demise of Mega Profile. When launched five years ago, it was the first major banner advertising company in the UK. It quickly secured sites on Selfridges in Oxford Street, Harvey Nichols in Knightsbridge and on Fort Dunlop on the M6.
Last year, Mega Profile lost the Fort Dunlop site to Clear Channel. However, the company’s biggest problems came after its former financial director left the company without tendering his resignation.
Although he has not been tracked down, and no legal action has been taken against him, his disappearance, and what came to light after he left, put the directors under considerable financial pressure. Some of the directors had to put up their own money to secure credit from their bank (MW last week).