Warman & Bannister was in receivership before sale

PR and ad agency Warman & Bannister Cambridge went into administrative receivership prior to its sale to the SNS Group, it has emerged.

The agency - run by MD Simon McKay and now with SNS - was forced into receivership when bankers refused to extend any further credit to the firm, leaving unsecured creditors including a number of unpaid freelance PROs.

Since the company went into administration, the debts left behind were not actionable in the courts. It was feared all unsecured creditors would go unpaid since the estimated £500,000 reclaimed by the sale would go to the bank.

But accountant Ranjit Bajon of corporate rescue and recovery firm Begbies Traynor, which has been taken on as joint administrative receiver to the firm, said forensic accountants employed to investigate W&BC would look to reclaim unpaid fees from an unnamed former client of the agency.

Accountants are still preparing reports on the total number of unsecured creditors of the firm, but hope to publish final details within three months, with final reports on W&BC due in August.

By this time, it is hoped the claim against the former client will have been settled, enabling the receivers to make an offer to those owed money by W&BC.

A spokesperson for W&BC, which was bought by B2B marcoms firm SNS earlier this month, maintained that no staff had been lost from its PR operations, based in Cambridge and Eindhoven, Holland.

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