33 year old Advertising Agency shuts doors - out of money
July 6, 2010
One of the oldest advertising agencies in Indianapolis, Pearson Partners Inc., is closing after 33 years in business. The business journal is reporting.
This is hard economic times for most companies, but the chances are we are going into a double dip recession, where advertising agencies are a dime a dozen, and most clients don’t even have a dime to spend.
Remember Advertising isn’t a core business as most management views it, it’s discretionary spending. If it comes to payroll or advertising, most C-level individuals would choose payroll. Hence the problem.
The chances are very high that this isn’t going to be the last established advertising agency to shut their doors, in fact if you were to bet I would say that business failures will only increase over the next 3 years as compared to decrease.
Pearson said in his e-mail that a “skeleton crew” of three will stay on for another week or two to finalize details and to pay creditors what it can.
“We do not anticipate, unfortunately, that enough accounts receivable will come in to pay everything,” he said.
Add to the list of people that will be shafted those people that this agency owed money to.
This is terrible, welcome to the new reality.
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