Allied Domecq will put an estimated $450 million in promotions and advertising business in review to replace 141 Worldwide, London, by October.
Allied Domecq last week said it will leave 141 and Bates in October, but would not comment on the reason. A spokesperson for AD said the company would review global agencies “as expeditiously as possible” and name a new shop well before October. Publicis, which owns Frankel in the U.S., is thought to be the front-runner for the business.
Observers say London-based AD is worried that 141 parent Cordiant Communications is financially unstable. Cordiant has lost a number of clients in recent weeks, including British American Tobacco’s Lucky Strike and Hyundai Motor America. Bates’ losses within the last year include Wendy’s and Woolworth’s. Bates’ U.K. office has been especially hard-hit, losing an estimated 45% of its billings.
Cordiant is investigating options for the groups, including a possible sale or “administration” — the U.K. equivalent to Chapter 11 bankruptcy protection — and continues to sell off smaller European agencies as part of a debt-reduction plan already underway.
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