MediaCom takes up Media Counsel’s slack
Following yesterday’s news that The Media Counsel had gone into voluntary liquidation, Glenda Wynyard has, unsurprisingly, gone to ground and Carat’s Ryf Quail has deflected questions to Joy Clark, Carat’s PR enforcer in Australia, who wasn’t able to be contacted. But StopPress has seen a letter that Wynyard sent to her clients to apologise and offer suggestions as to what they should do and where they should take their business.
The letter doesn’t give too many specifics about the reasons behind the decision, saying “there are many reasons that our business faces imminent closure but the most recent is that the purchaser we had pinned our final hopes on offered to take over our client and staff base for free, as at yesterday, leaving us with a financial hole that we will not be able to pull ourselves out from. This particular agency is a company without established accreditation and I can’t see that this would work in the time frame that we have.”
So, Wynyard made the decision to close it all down instead and suggested clients transfer their business immediately to Sarah Norrie of G2/MediaCom, someone she says she trusts implicitly.
Norrie says that around 90 percent of the Media Counsel’s clients have done just that (Chemistry media, a branch of MediaCom run by Nigel Douglas, has media accreditation). And MediaCom has also taken on some of the Media Counsel’s 20-odd staff, which some have said seems quite high.
Not surprisingly, with a big load of new, unexpected clients on the G2 roster, Norrie is “running around like a blue-ass fly”, but a professional, assured blue-ass fly who says everything is under control.
Aegis/Carat, who were being used by the Media Counsel after it lost its PMAA accrediatation in October last year, is not on the list of suggested agencies.
“We cannot proceed to work with Aegis as they have effectively frozen us out of their system over the past five days, plus they have recently changed their model so that they handle very little local business, hence the urgency of this matter,” Wynyard wrote.
Norrie wouldn’t comment on who the agency was that offered to take the clients off Wynyard’s hands for free and, at this stage, has no idea how much either Wynyard or Carat are in the can for as a result of the closure. Carat certainly isn’t saying anything. But one source says “they’ll be freaking out right now”.
Wynyard claimed she had $30 million of annualised bookings so *speculative guesstimations ahead* if Carat doesn’t have credit insurance it could be liable for between $2-3 million this month, possibly more given the Christmas bills that are rolling in.
Wynyard was hopeful her clients would stay with Mediacom and Norrie once the dust had settled, but she also suggested Kath Watson at OMD, Kevin Blight at Media Map, Derek Lindsay from FCB, Graham Hunter from Hunter Media and Rainmakers as good options for clients who wanted to look for a different agency.
She also gave a word of warning: “Carefully vet the other agencies that will come to feed off our situation. Not all are as good or ethical as they think they are – if they were I would have listed them for you.”
Wynyard was made redundant as managing director of McCann Universal in 2006 and she took many of the clients with her when she set up the Media Counsel, so she has some experience in these matters.
“Again, I am so very, very sorry for what is about to erupt. I know that the initial week will be the worst for you all, after the first or second month it starts to settle and then you will be able to get on with life. I really do wish you all a much better end to 2010 than what I have caused for you all at the beginning, all of our clients, without exception have been incredibly supportive and I just feel dreadful about what is to happen.”
It remains to be seen whether Wynyard, who one insider called “the Winston Peters of media”, will bounce back once again. But most seem to think she will.
Hmm?
January 27, 2010
Thanks Ben for the digging. Sounds like a mess. Also sounds like they should have hired a PR company (cash up front), rather than tell their clients 'someone offered to take you off my hands for free.' Geez.
Tough times
January 27, 2010
Well, it's tough times out there for many and I feel for her. Not a great state to be in, but Glenda has always worked so hard and I've always enjoyed working with her. I have no doubt she will ensure that the ends are tied up and that she will bounce back. Let's support not denounce, just for once, eh?
Blair
January 27, 2010
The advertising industry was one of the worst hit sectors in the recession..this story definitly reflects that. Hopefully everthing works it's self out
Taking out the trash
January 27, 2010
If Carat can't recover The Media Council's billings for the Xmas period then they'll be closing their doors too. What were they thinking picking up Glenda's business anyway? This recession is really clearing the dead wood out of the closet. You've got to feel for the staff at the coal face though, tough break.
rough call
January 28, 2010
That's a bit rough – I don't think it's the dead wood. I'd say the chances are pretty good that everybody has been affected by this to some degree and unfortunately it does depend on whether you're big enough from a capital perspective to weather it.
For the record, Carat are fine – they have confirmed payments to media affected.
Jammal
January 28, 2010
If Carat got shafted, they only got what was coming to them. Remember the Harman controversy.
Jon
January 28, 2010
A nice yarn but tells me nothing new. Much the same as the stories in the NZ Harold and Fairfax rags. It seems like all three scribes were in the same room when the announcement was made. C'mon, tell us: who the secured creditors are (and not likely to be media outlets or partner agencies but a finance company); who the liquidator is; and how much is owed.
Mike
January 29, 2010
Can anyone explain to me how the G2-Mediacom-Media Counsel thing works? As I understood it Mediacom was sold/folded into The Media Counsel a while back, so all the staff and clients of Mediacom went to TMC. So now TMC is falling over they just pull it back out and dodge the debt? Also whats the deal on the BlackwoodKing/G2 merger? Still happening?
Really?
January 29, 2010
Has anyone else heard the rumour Glenda has skipped the country. Too man personal guarantees Glenda?
Martin
January 30, 2010
Having competed against Glenda (personally) in two client pitches last year I found her proposed media strategies both unsound and bizarre. Unaware at that time that Media Counsel was in obvious financial difficulty it now makes perfect sense. Unable to book a variety of media she'd planned schedules with broadcasters who were still willing to extend credit. I am pleased for our two new clients who are enjoying the fruits of a well thought out campaigns that weren't affected by personal agendas.
Barry
February 2, 2010
Whilst I acknowledge Glenda's list of 'approved' agencies, I am apalled that she in her current position can speak with any credibility on behalf of our industry in terms of which agencies are operated professionally. Who does she think she is? Given her recent track record, who is she to be able to assume who is honest and who is not? I'm sure Ogilvy, JWT, M2M, StarCom, ZenithOptiMedia, MEC, Media 360, Lassoo, Mitchells, Spark would all have a very definite point of view to be by association possibly one of Glenda's "Not as good or as ethical as they think they are" agencies. Shame on you Glenda… fix up your own back yard before you slag off agencies who have weathered a bloody tough yearand made the difficult decisions to move ahead with their business in a sound state.
Jeff
February 2, 2010
Amused, I'm with you. Business can be shyte but Glenda is no shyster.
Supplier's feedback
February 3, 2010
I was a wet behind the ears media rep when I first met Glenda. Geez she scared the shit out of me. I figured if i could stick it out and win her over I'd make it anywhere! 12 years later…she still scares the shit out me…but damn if she's not the best MD I've worked with..and i've worked with you all!!! …she made this industry colourful and interesting. I wish her well.
MCB.
Get Real
February 3, 2010
There is an enormous amount of comment posted from folk who have no insight into what has REALLY been going on. Glenda Wynyard has changed the landscape of media in this country forever. An entrepeneur she is quoted to be by many of you. Perhaps if she had learnt the necessary skills, she would have taken less risk. She would have paid all of her creditors and staff. She would not have cleaned out her offices in the middle of the night. So to all the fans of the Winston Peters of Media, your sanguine view of her is based on a far too limited perspective. The more you learn of the actual truth related to this event and previous ones, you realise our industry is far better off without her.
<em>This post has been edited to eliminate potentially defamatory content
Vincent Heeringa</em>
Rumours
February 3, 2010
I went to TMC building today to see office desks and computers still in the same place . Have any of you seen the TMC building cleaned out ? In regards to blood on the floor , it looks more like coffee rather than blood . Rumours . Now thats how rumours start .
@ rumours
February 3, 2010
All the laptops were taken by GW oops I mean the "Office Cleaner", but computers were left behind. I'd hardly class those as personal belongings. Desks were there but all the chairs were cleaned out. Even the dishwasher. Are the office chairs personal belongings too?
Rumours
February 3, 2010
I hardly think the office has been cleaned out . Check it out from the street . It looks like everyone is on holiday . I must admit I didnt notice chairs there or gone . I think people on here are starting Rumours . (Blood on the floor) .Come on . If you need help GW ,Im there.
Amused...
February 3, 2010
@ Get Real – Do you REALLY know what's going on? Keen to provide your name and relationship with GW…? I would put money, and my life on it, your perspective is the limited one.
Spectator
February 3, 2010
Rumours I know who you are… I saw you at Media Counsel today
Unsecured Creditor
March 11, 2010
Does anyone know who the liquidators are yet? There is no mention of liquidation on the 'companies office' website!