Head New Media to close down as Lowe pulls plug

Head New Media, the digital agency part-owned by The Lowe Group, is

to close after seven years. Its clients include Unilever, Bass, Weetabix

and Hewlett-Packard.

Lowe is believed to have fallen out with the agency and pulled the plug

on further funding. "We've been trying to unwind the relationship for

some time because it got to the point where there was no mutual

benefit," said Felix Velarde, co-founder and managing director of Head

New Media.

He added that the relationship with Lowe had degenerated since the ad

group's interactive strategist Mark Cave left last year.

Head's closure has led to 20 job losses.