Leading business recovery firm Portland Leonard Curtis has successfully negotiated the sale of Hampshire based marketing agency Idealogy Limited, after the business suffered cashflow issues and was placed into administration.
Operating from two sites, Idealogy offered marketing services, branding and creative solutions to a range of sectors and companies including Kenwood, Fitness First and Ordnance Survey. The company traded successfully for over 30 years however their fortunes changed when a number of employees left the company, which led to a skills shortage.
As part of an administration process, Portland Leonard Curtis instructed agents to assist with the sale of the customer database and intangible assets. This exercise saw a number of interested parties come forward with an eventual sale being completed to Cherry White Design, a known competitor to Idealogy.
There remains a long leasehold flat in London within the company which is currently under offer. Portland Leonard Curtis are also assisting with the ongoing book debt collection.
Associate Director Stewart Goldsmith commented:
“We have to remember that this company had successfully traded for over three decades and overcame many recessions and, more recently, a Covid-19 hit economy which saw many businesses reduce marketing spend. It was not until March 2021 when it began to experience difficulties after a series of employee resignations which led to a unsuccessful recruitment drive where they struggled to hire like-for-like replacements. The skills shortage meant that, despite the company continuing to receive projects from its clients, it became increasingly difficult to resource and deliver this work.”
The director of Idealogy attempted to raise finance to overcome the initial cashflow issues and then talk to competitors in the industry in an attempt to salvage the business. Both were unsuccessful so to alleviate the immediate cashflow problem within the business the director decided that an orderly winding down of the company was required whilst a marketing campaign for the business and assets was put in place. Due to the lack of available funds and the interest in the business assets only the director made the decision to appoint Portland Leonard Curtis as administrators to the company.
Stewart continued:
“We managed to secure a quick sale before the value of the company assets, in particular the customer database and pipeline of work, diminished. Whilst many businesses have struggled as a result of the national lockdowns, Idealogy was generally performing well at the beginning of restrictions. It was an unusual set of circumstances which saw a number of employees looking to consider alternative employment options after returning from a working from home environment. In this sector the skills and expertise of the staff are paramount to the success of the business.”
Portland Leonard Curtis, formerly known as Portland Business Recovery, recently joined forces with national firm Leonard Curtis which employs 239 people across 19 UK offices. The deal, designed to strengthen presence on the South Coast, will enable Portland Leonard Curtis to add more service lines to its existing recovery capabilities, especially around cashflow support and commercial finance, to support businesses facing financial difficulties and drive recovery growth post-Covid.