INTERNATIONAL: Lexivision bankrupt after Graphium pulls its backing

STOCKHOLM: Top three Swedish PR agency Lexi-vision, whose clients include Electrolux and building company NCC, has filed for bankruptcy after its financial backer, printing group Graphium, pulled its support.

STOCKHOLM: Top three Swedish PR agency Lexi-vision, whose clients

include Electrolux and building company NCC, has filed for bankruptcy

after its financial backer, printing group Graphium, pulled its

support.



Last year, Lexivision suffered a loss of over pounds 1 million, the

result of a period of acquisition which coincided with a loss of

confidence as companies prepared for the possibility of a global

recession.



’We made too many investments, a lot of people showed interest in our

services, and then the market was suddenly not there,’ said managing

director Jan-Erik Ander.



Lexivision was founded in 1993 by Ander, together with Peje Emilssom,

after he left Sweden’s largest PR group, Kreab.



Ander had been MD of Kreab for ten years.



In 1997, Lexivision began a process of expansion through acquisition,

growing to a staff of 130, with offices in Malmo and Stockholm.



However by autumn 1998, the agency was experiencing financial

difficulties as the market dried up and Ander sought outside

investment.



In late 1998, printing company Graphium bought a 70 per cent stake in

the agency. Graphium was to invest pounds 1 million in Lexivision to

wipe out its debts, but at the start of last week, backed out of the

deal.



The company, declared bankrupt, is now in the hands of lawyers Hagglund

and Ramm Ericson.



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