Cordiant Secures Temporary Reprieve from Bankers

Share this article:
Troubled agency holding company Cordiant Communications Group has secured temporary backing from its bankers, allowing the group to release preliminary results for last year and thus avoid suspension of its shares.


The London-based conglomerate, owner of ad agencies like Bates Worldwide, 141 Worldwide, Scholz & Friends and Healthworld, has won 12 weeks' reprieve from its bankers.


Cordiant reached an agreement in principle "for continuing financing agreements to July 15, 2003 while the board concludes its review of the various strategic options," a statement said.


The company is entertaining offers for its sale after its financial position worsened April 28 when client Allied Domecq, a beverage and liquor maker, said it would terminate its contract from October. That account is worth $27 million, or 3.4 percent of the agency conglomerate's overall billings.


In a statement, Cordiant said that "it has received very preliminary approaches, which may or may not lead to an offer being made for the company. This is one of a number of alternative strategic options that the board is considering."


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

The Mobile-Email Marriage

The Mobile-Email Marriage

Marketers who considered leaving email at the altar are finding renewed passion for the channel as an ever-increasing number of customers triage, read, and click-through email on their smartphones.

Harnessing Deep Industry Expertise to Capture New Markets

Harnessing Deep Industry Expertise to Capture New Markets

Darren Rodgers explains how he applies his deep healthcare expertise, and broad organizational experience, to marketing in an industry in the throes of historic transformation.

Fast Facts: October 2014

Fast Facts: October 2014

Some quick info hits to keep you up-to-date, including the percentage of emails opened on mobile devices.