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Hyundai Set to Pull Creative Biz from Troubled Cordiant: Report

News, 05 February 2002

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)