Robson Brown looks to 'media partner' as Round2 UK Group is placed into administration
Robson Brown looks to 'media partner' as Round2 UK Group is placedIntegrated media company Round2 Communications UK group, including Newcastle agency Robson Brown, has been placed into administration.
Staff at the Newcastle agency were made aware of the situation this morning, and a statement from the company explained that the agency would look to enter into partnerships with ‘a well established media partner’.
A spokesperson for Robson Brown, explained: “The financial structure which Round 2 adopted was based on leveraging significant debt into those businesses has been wholly inappropriate and totally unworkable. This has created unsustainable financial stress into the group which has resulted in the group going into administration.”
Round2 made three acquisitions in the UK in 2010, beginning with Robson Brown in March, and then London media group AW Communications the following month.
Last month it completed the acquisition of Bath-based agency Attinger Jack Advertising for an undisclosed fee.
Round2, which specialised in media planning and buying services, was founded in Los Angeles in 1993.
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Comments
Well anyone who didn't see this coming a mile off, was a little bit naive.
The tragedy is the effect this has on all the staff who work at and rely on theses company's for their income, while the senior management play at being 'media tycoons'!!!
You can either afford to by a business or not - it isn't rocket science!
A spokesperson for Robson Brown, explained: “The financial structure which Round 2 adopted was based on leveraging significant debt into those businesses has been wholly inappropriate and totally unworkable.
So why did they do the bloody deal then??????
So are RB OK then?
Will clients seriously accept them writing off debt and transfer into another guise???
comments
Worked for Man United.
They don't appear to be writing off any debt, or transferring anything - they're in administration. So they may well work their way out of administration. Let's hope they do.
Basically Round 2 are a bunch of bean counters who leverage debt onto the business's they buy - they effectively use the money of agencies they buy, to fund the borrowing for the buy-out!!
It's the equivalent of selling your house to someone and then paying their mortgage for them!!!
So the big question is, why on earth would you make that kind of a deal in the first place????
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