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Yellow M goes into receivership

LONDON - Yellow M, the Newcastle-based advertising agency that created the Conservative Party's political advertising campaign for the last general election, has gone into receivership.

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Twenty-five jobs are expected to be lost following the demise of the agency, which ceased trading on Thursday last week after calling in the receivers on Tuesday.

The 10-year-old agency, which lost the Conservative Party account in June last year following the party's defeat at the general election, is a small regional agency with offices in London, Edinburgh and Newcastle.

In February, it was revealed that Yellow M was planning a management buyout that was to see the Edinburgh office break away from the parent office in Newcastle. The management buyout team was being led by managing director Ian Wright, who was working with senior staff, including creative directors David Isaac and Kevin Bird, and head of account management Jill Taylor.

The split from Newcastle, which is run by Yellow M founder and owner Mike Dethick, is thought to have been an amicable one.

The buyout was estimated to have been worth around £1m, based on earnings last year of £9.3m. However, the earnings figure included a project fee for the Conservatives' general election advertising -- a relationship that was terminated as soon as the election was decided in June.

Its work for the Conservatives earned it two "Turkey of the week" awards from Campaign magazine. Other clients of Yellow M include the Scottish Executive, Dunfermline Building Society, Burn Stewart Distillers and Scottish Enterprise.

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