NEWS: Knight Leach Delaney shuts due to bad debt

Knight Leach Delaney, the Liberal Democrats’ advertising agency, was forced into voluntary liquidation by bad debts last Friday, leaving the Lib Dems without an agency during its party conference in Brighton this week.

Knight Leach Delaney, the Liberal Democrats’ advertising agency, was

forced into voluntary liquidation by bad debts last Friday, leaving the

Lib Dems without an agency during its party conference in Brighton this

week.



Stuart Leach, the agency’s former managing director, has resurfaced at

Rapier Stead and Bowden, where he will work on the agency’s key clients

with the chief executive, Jonathan Stead, and the managing director,

Peter Croome.



All 20 KLD staff were made redundant last Friday, but Leach and five

colleagues, including the head of art, Andy Ray, have been given jobs at

Rapier Stead and Bowden.



A statement issued by Leach and Paul Delaney, the creative director,

said: ‘We did some award-winning work for some terrific clients, but,

unfortunately, we ran out of time.’



Alison Holmes, the campaign manager for the Liberal Democrats, declared

that Leach would continue to be part of the campaign team, but added:

‘We will think about what to do next week once the conference is over.’

A new poster campaign for the Lib Dems by KLD was launched this week.



It is thought that the major debt came from large overheads,

particularly KLD’s premises in Mortimer Street, London W1. The agency

also lost money when it took on Tom Rubython’s Sunday Business as a

client - although the ads created for the paper never ran, KLD pulled

out before debts were settled.



As well as the Liberal Democrats, KLD’s clients included Red Bull,

Tetrapak, Mates condoms, Debenhams and Kia cars. Few of these clients

provided consistent work or revenue for the agency, which was almost

being run on a consultancy basis.



KLD started up almost exactly two years ago. Paul Delaney was the former

creative director of Kevin Morley Marketing, Leach had been the managing

partner at Walton and Wiggins, and Dick Knight was the former chairman

of TBWA Holmes Knight Ritchie.



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