Chrysler owes Ad Agency BBDO $58 million.
April 30, 2009
BREAKING : Ad Agency BBDO Detroit owned by Omnicom Group is owed $58 million in the bankruptcy document, that you can read here
It’s worth noting, when your second largest creditor is your ad agency, exactly what was Chrysler spending their money on… seriously… like this company spent everything they had on advertising… and nothing on R&D …. no wonder they are where they are… in bankruptcy.
They even listed Peter Arnell’s Peapod in the bankruptcy documents…. the POS golf cart… that will never get off the ground… especially now..
It is unlikely that advertising agency BBDO will receive the complete funds, if any, and to make matters worse it appears that BBDO might even lose the account as per the rumors on the street.
$58 million dollars… it’s enough cash to force all sorts of layoffs…. and those layoffs most likely will be expected. We are unsure if that is just their billable fees, or if that is hard dollars allocated out of the ad agency for media spends, as BBDO Detroit has not gotten back to us prior to this publishing. If it’s hard dollars allocated out of the agency, then the chances are the layoffs will be far more severe… and it’s our speculation that that is exactly what the bulk of the money is.. leaving BBDO holding the bag for Chrysler’s bankruptcy.
We actually expect Omnicom to go into the bailout line after this one.
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