Pre-packaged administration describes the situation when a company has been saved, either by re-financing or selling the business, shortly after the administrators – in this case Kroll – have been called in.
PPS offered DTW £2m in an option agreement last year, which was accepted (PRWeek, 5 November 2004).
The agreement meant if a larger company bought PPS – an outcome the group was actively seeking – DTW co-directors Robin Treacher and Peter Whelan would be bought out, and control of would go to PPS.
In return, DTW was not allowed to sell to another company before the deal went through.
Treacher and Whelan would have been able to leave the company under the proviso that they did not set up a rival agency.
'Had we been purchased we would have lost everything. But I am more disappointed than relieved that a successful sale didn't go through,' Treacher said.
Treacher revealed he would look for another buyer for DTW.
DTW's current clients include Warrington Borough Council and Middlesbrough Council.
The agency hired former Haringey head of press Julie Hollings last November to expand the business in London and the home counties by setting up an office in the capital. The agency also has offices in North Yorkshire and Kent. DTW was the only PR agency under the PPS umbrella.
In an unusual move, R Capital is actually using DTW to handle its PR.