The adage “it never rains but it pours” has an uneasy ring of truth at Cordiant Communications these days.
Not only has the group recently been hit with a triple whammy – a stock price dive with institutional investors reportedly calling for the head of ceo Michael Bungey [WAMN: 31-Jan-02], the serving of a £5 million writ by its most senior PR duo claiming wrongful dismissal [WAMN: 29-Jan-02], and the loss of its $450 million Hyundai US media buying business [Accounts on the Move: 01-Feb-02] – it is now rumoured that Hyundai, “one of the global rocks upon which the business is built” (according to Bungey), has also decided to pull its $150.8m US creative account from Cordiant’s Bates network.
The business, handled for fifteen years by Irvine, California-based Bates USA West, was put up for review last week [WAMN: 28-Jan-02]. Although participating in the review, insiders say Bates’ days on the account are numbered, despite the fact that a public decision is not expected for at least a month.
News source: BrandRepublic (UK)