Leagas Shafron Davis axes almost half its staff to beat bankruptcy

Leagas Shafron Davis, the ad agency responsible for Hector the tax inspector, has been forced to axe almost half its staff to stave off bankruptcy.

Leagas Shafron Davis, the ad agency responsible for Hector the tax inspector, has been forced to axe almost half its staff to stave off bankruptcy.

The redundancies came after employees' February pay cheques failed to arrive and the agency's founding partners, Ron Leagas and Mike Davis, sought emergency financing to keep the business afloat.

The crisis was precipitated by the agency's failure last year to land the 15 million stg account of Royal Sun Alliance, the group created when its Sun Alliance client merged with Royal Insurance.

The agency had hoped to ride out its problems and avoid redundancies by winning replacement business but has failed to do so.



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