Partner Article

Newcastle agency rues collapse of US partner

THE US media company which recently acquired Robson Brown has gone into administration, sparking a new job loss fear in the region.

The Newcastle based ad agency is now looking for a permanent partner after staff were informed of the collapse of Round2 Communications yesterday.

A spokesperson for Robson Brown said: “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.”

Robson Brown posted annual sales of £37m for the last year and there was hopes that the take over would lead to annual revenues of £60m.

Early forecasts predicated that the 95-strong North East workforce would grow.

This was posted in Bdaily's Members' News section by Ruth Mitchell .