Arc Advertising has increased the pressure on the Sunday Business, with
which it parted company last month, and served a writ demanding that the
paper pay its bills.
Arc is demanding payment of more than pounds 70,000, which it claims it
is owed for work done on the launch ad campaign for the paper, which
failed to run.
Tim Coton, the business development director at Arc, confirmed that the
agency had sent the paper’s founder, Tom Rubython, a writ and was
expecting a deal to be made out of court.
‘We realise that the Sunday Business is a fledgling organisation,’
Coton said. ‘We have a great deal of empathy with that, but we do have
this money outstanding.’
He continued: ‘Nobody could have done more [than we did]. We are more
responsive to turning around newspaper advertising. We bent over
backwards, forwards and sideways. We tried to accommodate Rubython. But
this is a business and we were not going to fool ourselves.’
Sunday Business is also facing problems from a former US investor,
Albert Zlotnick, who is suing Rubython and the holding company, Business
Newspaper Publishing, over a pounds 50,000 loan.
Agencies are also demanding action over the failure to deliver
guaranteed circulation. WCRS was guaranteed circulation figures of
350,000 for its clients, Rail Track, BMW and Orange, and has so far
refused to pay anything for ads it has booked. Unofficial circulation
figures suggest the paper’s sales have fallen from 145,000 in the first
week to below 70,000.
Rubython confirmed to Campaign that he expected to settle all claims out