Embattled PR Agency, Bell Pottinger has gone into administration after being accused of running a racially charged PR campaign in South Africa.The troubled public relations firm put itself up for sale last week, but could not find a buyer. HSBC, Investec and luxury goods company Richemont are among a string of clients that have cut ties with the firm following the scandal.Last week, the firms’s over 200 staff were told that the company’s financial position had become dire.
On Tuesday, accountancy firm BDO was appointed as administrators. A spokesman said:
“Following an immediate assessment of the financial position, the administrators have made a number of redundancies. “The administrators are now working with the remaining partners and employees to seek an orderly transfer of Bell Pottinger’s clients to other firms in order to protect and realise value for creditors.”
The administration will not affect the company’s international operations as they continue to trade under the control of their own management teams.
Here is the full statement from BDO
Bell Pottinger has been heavily financially impacted by the well-publicised issues resulting in losses of clients, partners and staff and culminating in the expulsion from the Public Relations and Communications Association (‘PRCA’).
Late last week, the level of those losses, compounded by the inability of the business to win new clients, was such that remaining management were left with no option but to commence the process to place all UK Bell Pottinger entities into administration.
A notice of intention to appoint three partners in BDO as administrators was filed on the evening of Friday 8 September 2017. The appointment became effective today, 12 September 2017.
The entities in administration are: Bell Pottinger Private Ltd, Bell Pottinger LLP and Bell Pottinger Services Ltd. None of the subsidiaries outside the UK is in administration; they continue to trade under the control of their separate management teams.
A BDO spokesman said:
“Following an immediate assessment of the financial position, the administrators have made a number of redundancies. The administrators are now working with the remaining partners and employees to seek an orderly transfer of Bell Pottinger’s clients to other firms in order to protect and realise value for creditors. We have taken appropriate steps to preserve the rights Bell Pottinger may have in relation to the failure of the business.”