Leeds-based Propaganda has played down speculation that its grasp on the ghd ad account could be under threat. Industry insiders have claimed that some of the agency’s staff are fearful that the account could be on its way, if ghd’s well-publicised take-over talks go through.
The salon-only hair beauty brand, owned by parent company Jemella, is known to be speaking with a number of different investors regarding an acquisition, although no deals have yet been agreed. In March, reports revealed that Jemella was in talks with Lloyds Development Capital regarding a possible £55m take-over of the business.
One industry source commented: \"I get the feeling that there is a growing amount of uncertainty amongst staff and suppliers regarding the future of ghd.\"
However, Propaganda MD Mike Phillipson revealed that while the agency is very aware of the speculation, no deal has yet been made and the agency will continue its work with the firm. He said: \"As far as we’re concerned it is business as usual.\"
The agency has worked on the account since 2002, helping to increase its turnover from £12m to £36m in little over a year. It has been responsible for producing several high-profile ad campaigns, such as ‘Urban Angels’ and ‘A New Religion for Hair’, in that time.
In November of 2003, Jemella consolidated its relationship with the agency by appointing Propaganda chairman, Julian Kynaston as its marketing director. Since then Propaganda has been instrumental in the brand’s growth across Europe and helped to launch the nu:u range, which aims to target a younger market.
In an interview with Adline in 2005, Jemella managing director, Martin Penny revealed that the firm was in talks with investors with a view to fuelling the next stage of the company’s development. One such development was the bid to penetrate the market in the US, particularly in New York. He stated: \"We’re trying to create a buzz in New York and take it from there. The best salons in the world are there, and it is in keeping with the brand’s core values.\"
In unrelated Propaganda news, the agency has further bolstered its client portfolio with appointments by telecoms firm Kingston Communications and property developer Simon Wright Homes.
Propaganda has been selected by the Information Services arm of Kingston Communications to work on its full complement of brands, including 118 800 and its directories. Creative is expected to appear in September.
Meanwhile, the agency has also been approached to assist the continued growth of Kent-based firm Simon Wright Homes.