Agency Closing leaves 5 Retail Brands to Contact
Steve’s breakdown: The clients we’re taking about are CVS, Kohl’s, Staples, Office Depot, and Bed Bath & Beyond. They are the clients of the WPP shop Triad but not for long. Sure WPP is going to try to move them to another agency but will they go peacefully.
We think not!
As of late last year, remaining Triad clients included CVS, Kohl’s, Staples, Office Depot, and Bed Bath & Beyond. The GroupM spokesman declined to say how remaining Triad clients would be handled.
Triad began evolving its business last year toward a broader programmatic offering, not linked to specific retailers or their data, and had further turnaround efforts in the works. WPP unsuccessfully sought a buyer for the business last year, according to people familiar with the matter.
The closure leaves some loose ends. According to an email from Triad provided to Ad Age, some employees that were owed payouts since the 2016 acquisition by WPP still haven’t fully been paid, due to unresolved federal and Florida tax audits for the St. Petersburg-based firm. The GroupM spokesman declined to comment.
WPP last November sued the two private-equity firms that previously owned Triad, plus three former Triad executives and an insurance company that indemnified against losses on the deal, saying it lost more than $120 million because of “breaches of representations” and “actual fraud,” according to Bloomberg News.
In 2016 Triad had $509.3 million in gross revenue, including $239.4 million from Walmart that had fallen millions of dollars short of projections issued when the deal closed, according to WPP’s complaint. By 2017, Triad revenue had fallen to $399.2 million.
The lead private-equity owner, Rockbridge Growth Equity, in a statement to Crain’s Detroit Business last year, categorically denied “any credible facts to support any claims made against it in the lawsuit.”