Boymeetsgirl in financial meltdown as administrator called in

LONDON – Mayhem has broken out at Boymeetsgirl as the agency’s financial problems reach a crisis point.

The agency, which was co-founded by Andy Law last January, has been handed to the administration firm Kroll, and is set to be closed down. Sources say that staff are now appropriating office equipment as collateral against their salaries. Phone lines were dead on Wednesday.

Boymeetsgirl's creditors include Interpublic, Springer & Jacoby and its two former partners Kate Stanners and David Pemsel, who left in September. The agency is thought to have had problems meeting payments to these parties following its management buyout last October and it remains uncertain whether they will be paid in full.

Two weeks ago, a serious streamlining drive made 14 members of staff redundant. These staff have yet to receive their redundancy pay and some are still waiting to be paid for time they worked in February.

Last week, the newly appointed executive creative director, Logan Wilmont, left the agency and it was widely expected that Chris Chalk, the planning director, would follow suit.

The agency's clients are reviewing their options. Total Petrol Stations, which reappointed Boymeetsgirl last year after a pitch, is expected to hold another pitch, while Buena Vista Home Entertainment is already involved in a pitch. The future of the agency's DaimlerChrysler business is unknown.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.