Deepgroup network closes after rescue package falls apart

Deepgroup, the digital communications group that includes the

Deepend, Relish and Gluemedia agencies, has gone into liquidation.



An announcement was made to staff on Monday afternoon that the group was

to close and is likely to result in the closure of the London, New York,

Prague, Toronto, San Francisco and Sydney offices. It is understood that

the management team was in negotiations for a rescue package but the

offer was pulled at the last minute.



Deepgroup, which started trading in 1994, was founded by the chief

executive, Gary Lockton, the design director, David Streek, and the

creative director, Simon Waterfall.



Deepgroup's client list included Tango, Kellogg, Hula-Hoops, Siemens and

Panasonic.



Earlier this year, Deepend developed French Connection's "fcuk kinky

bugger" website after its TV campaign, developed by the ad agency

TBWA/London, was banned.



Industry insiders cite the economic slowdown as the main reason for the

cessation of trading and reluctance by management to commit to

redundancies in the face of reduced revenues.



The group's new-media ad agency, Gluemedia, is thought to be in the

process of a management buy-out. A decision is expected early next week.

The agency, which has a client list that includes Virgin Trains, E4,

Thomas Cook and One2One, is one company in the group that is

profit-making.



It is not yet known how the closure will affect Sleeper, the joint

interactive TV advertising venture set up by Deepend and the web agency

Blink.



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