M&C Saatchi Co-founder Maurice Saatchi resigns

Lord Michael Dobbs, Sir Michael Peat and Lorna Tilbian also stepped down as directors along with Saatchi

e4m by exchange4media Staff
Updated: Dec 11, 2019 9:29 AM
Maurice Saatchi

Lord Maurice Saatchi has reportedly resigned from M&C Saatchi, the agency he founded along with his brother Charles in 1995. According to reports, Lord Michael Dobbs, Sir Michael Peat and Lorna Tilbian also resigned as directors along with Saatchi. The exodus comes amid a loss of clients and profit warnings by the agency.

Reports state that M&C Saatchi Chairman Jeremy Sinclair wrote in a statement to investors, "We have accepted the decision of these directors to resign. We are determined to restore the operational performance and profitability of the business and are already implementing all of the recommendations set out in the PwC report we announced last week." He added,  “We had started a process to reconstruct our board with new independent directors. This new board will have a mandate to conduct a full review of all aspects of our governance.”

As per news reports, the agency issued its second profit warning of the last week (4 December). In August saw PwC uncovered a string of past “misstatements” in the company's accounts, including an "overstated accrued income" of £2.6 million. In total, the company was made to re-account for nearly £6.5 million on its balance sheet.

The agency has also been facing a loss of clients. NatWest, which added to a notable part of M&C Saatchi's revenue, moved its advertising account toThe&Partnership.

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