NEW YORK: Medical communications agency Belsito & Co. is closing its doors amid a bitter dispute between CEO Marybeth Belsito and former president William Daddi.
Beginning next week, Belsito will operate under the name Belsito Healthcare Communications. Daddi has already started a new agency, Daddi Brand Communications.
Daddi, former head of Euro RSCG Magnet's national consumer practice, joined Belsito & Co. in July 2004 to lead Demand, a new consumer arm of the firm.
When Belsito took a medical leave from the company in October 2004, she handed fiduciary responsibility to Daddi. She returned full time in May.
Belsito said the firm declined financially in her absence and that she was "caught off guard" by some of Daddi's decisions.
"Bill Daddi made choices, and he had the authority to do it," she said. "I didn't think some of those choices were to the benefit and prosperity of Belsito & Co."
Belsito had begun filing a lawsuit against Daddi for approximately $10 million in damages, but reconsidered this week. She said she would handle the defunct company's outstanding debt personally.
In an e-mail statement to PRWeek, Daddi disputed his alleged role in the firm's debt, saying that during his tenure, "new accounts were gained, the new business pipeline was filled, and the agency was forecasted to overcome its debt and indeed return to profitability."
Belsito acknowledged that Daddi worked on new business, but said his vision for the company "didn't complement, collaborate, or coincide with mine."