The Sheffield-based agency has worked on TV ads for DFS before, but will now work on all of the retailer's broadcast work. The agency is currently working on a TV ad for DFS dining-room furniture.
The move is a major blow for PWLC. DFS accounts for the majority of its £46.5 million billings. The agency is understood to have been making redundancies over the past couple of weeks, including creatives and account management on the DFS team.
Earlier this year, Rick Ward and Pete Camponi quit as the agency's joint creative directors. The pair are understood to be working on projects for DFS in a directing capacity.
John Longworth, PWLC's chairman, is the agency's last remaining partner. Longworth denied the account had moved and said PWLC remained on the DFS roster. The move is not thought to affect The Publicity Bureau, which handles DFS's press ads.