Latitude, the Warrington, Cheshire and London based online Marketing Agency has gone in to Adminstration. Latitude Group have been known for their slightly risky tactics over the years so were not always seen as the good guys in the search space.
Nevertheless, it’s sad to see such a big team go. It appears the situation is now changing: They have been bought out of administration by their management after appointing BDO. Vitruvian Partners (a major Latitude shareholder) are backing the deal which will see their stake increase significantly. Barclays agreed to write off £5m in loans to the company according to The Daily Telegraph.
Best of Luck to the Latitude Team – feel free to comment (we’ll keep your confidentiality if you like).
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{ 12 comments… read them below or add one }
Hi Guys
It’s business as usual here at Latitude following the MBO. All the jobs are safe and we’re still recruiting.
Our take on the story is here – http://www.latitudegroup.com/blog/latitude-completes-deal-to-accelerate-growth/
Happy to share details over anyone whoose interested
Neil
Hi Neil,
Good to hear from you. Can you reveal any information on this pre-pack?
Top of the morning to you Neil
Great news – but what is happening to all the your creditors?
You must owe Google a few million pounds? Have you screwed them as well as Barclays?
Was the MBO done by the same team that took them into administration?
Are you planning another MBO in 2011? “Latitude 2″ anyone?
The words “Piss-Up” and “Brewery” spring to mind.
Jokers.
Facebook you say.
http://www.facebook.com/group.php?gid=244135818786
Just a note to make it clear that we value our suppliers as well as our clients. We have developed a superb relationship with the search engines and that will not be jeopardised.
Latitude has invested in its SEO team and tools and across channels in 2009 and the management team, along with our investors, are pleased to carry the business forward including new funds for investment.
I encourage those who have for some reason been unwilling to share their identities to do so and/or to contact us.
Pity the search industry doesn’t have a league points deduction punishment to stop this sort of thing from happening. From the outside looking in through the layers of b*llsh*t, it looks like a poorly managed giant will cause a significant number of smaller suppliers to suffer. I really hope there are no major knock on affects for those who don’t deserve it.
Mind you, the amount of b*llsh*t being put out there at the moment is enough for any potential clients to question what they’re being told at pitching time …one would hope.
To quote from the Latitude Blog -
“While the historical company structure went through an administration process, all of the assets with which we serve our clients continues – with increased investment capability – as Latitude Digital Marketing Ltd”
I’m sure the creditors of the old business will be pleased to hear the assets are being put to good use!
Also – I have a question for Alex:
Quote:-
“We have developed a superb relationship with the search engines and that will not be jeopardised”
How many creditors found themselves in the “can be jeopardised” category – and what were they owed?
Any chance of giving us the numbers so we can have a better understanding of how this turns into a ‘good news’ story?
Sounds like a debt wiping exercise to me. Management buy out of the assets – at a cheap price no doubt. Write-off big bank debts and other creditors while they’re at it. Hey-presto, same company continues with zero debt …just what an investor wants to see (hence the “increased investment capability”).
Good in-depth article from Brand republic – “Latitude in the doldrums?”
http://community.brandrepublic.com/blogs/bobwillott/archive/2010/01/13/latitude-gone-west.aspx#comments
Alex
You clearly have been reading this Blog, care to comment on the text taken from Brand Republic?
“As reported in the August 2008 edition of New Media Agencies Financial Intelligence, Hoye co-founded Go-Industry in 1999 and, using €51 million raised from US venture capital sources, embarked on a massive acquisition spree that included the well-known UK industrial auctioneer Henry Butcher.
By 2004 Go-Industry was generating annual revenues of €50 million and on 5 January 2006 it was admitted to AIM by means of a reverse takeover. At that time Go-Industry had run up losses of €56 million and had borrowings approaching €10 million. Then, on 26 June that year, a brief announcement said that Hoye had resigned.
One week later the board signed off the accounts for 2005 showing a further loss of €11 million, of which over €4 million arose from stock write-downs and €4.6 million related to exceptional items including bad debts.”
http://community.brandrepublic.com/blogs/bobwillott/archive/2010/01/13/latitude-gone-west.aspx#comments
What is the point of asking Alex Hoye to comment? Surely you know what you will hear from him is not what you need to know?
Low life.
@buyer beware,
We’re always keen on getting both sides of the conversation. You’re right, they are often biased but that’s what makes a good debate.