London-headquartered ad agency Leagas Delaney has called in administrators and launched a new operation as it tries to restructure its finances.
It has emerged that the network's chief trading companies, Leagas Delaney Group and Leagas Delaney London, last month changed their names to TM Limited and TM London, then went into administration. On December 23, creditors were asked to give details of what they are owed.
However, on December 4 a new company called Leagas Delaney - London Limited was set up, and is now in operation.
"We have wound up one company in order to start another," explained chairman Tim Delaney. "To create a new vehicle we have to go through this process."
The network embarked on the reorganisation after consulting KPMG and Lloyds TSB. It follows a dismal few years for the agency: in 2003 it withdrew from the US market, and it has lost major accounts such as Adidas, Harrods and the BBC (all in the UK), plus Clarins Cosmetiques and Ikea in France.
This is not the first time Leagas Delaney has run into financial difficulty. In 1986 it was sold to Abbott Mead Vickers when faced with closure.
Data sourced from: BrandRepublic (UK); additional content by WARC staff