Financial Woes Stem From Client Failure
BOSTON--CC and D Communications closed down on Friday after 16 years.
Agency chairman Peter Kostopoulos said he, partner Harry Daly and creative director Judy Austin plan to pursue ventures as consultants or independent contractors. The remaining three or four staffers are looking for new jobs.
At its peak, the Boston-based shop billed about $25 million and employed a staff of 30. One of its last remaining clients--the Massachusetts Convention Center Authority--is expected to review agencies, according to Kostopoulos. Convention Center representatives could not be reached for comment at press time.
CC and D's financial woes came to light in May when executives sent a letter to creditors detailing cash flow problems brought on by the bankruptcy of client Sunrise Suite Hotel and Casino in Las Vegas. "We intend to pay our creditors" and file for bankruptcy only as a last resort, Kostopoulos said at that time.
That was the death knell for an agency that for years struggled to find the right management mix in an effort to grow its business beyond a small core of clients.
Kostopoulos last week said that among the factors contributing to the shop's demise was the rising cost of doing business, in particular, recruiting and retaining staff. Even so, he added, "I'm proud of our people. They have all for the most part moved on to bigger agencies."