Final Chapter For Hively Agency

Houston agency owner Charles Hively has closed the doors of his 13-year-old shop after trying for nearly a year to recover from Chapter 11 bankruptcy proceedings.
In a statement, Hively said he was shuttering operations of his former Hively Agency after being forced from Chapter 11 reorganization into Chapter 7 liquidation on March 13 by the U.S. Southern District Bankruptcy Court in Houston.
Hively could not be reached for comment at press time.
It was unclear how many employees were still with the company at the time of the court order. The agency laid off 18 of 21 staffers after filing for bankruptcy protection in March 1997.
According to the statement, the Houston ad veteran changed the company’s name to Hively Creative Laboratory, setting up shop as a creative resource for other agencies.
“Unfortunately, we were hampered from achieving our goal by our inability to collect on unpaid receivables,” Hively stated in the release. He did not disclose who owed those funds to the agency, but said future monies collected by the court will go toward creditors under the Chapter 7 plan.
It was Hively’s own unpaid invoices to vendors which forced him into bankruptcy protection last year. That cost the agency its signature client, Subway Sandwich’s $4-5 million account in Texas.
Subway franchisee representatives put the regional advertising business in review when Hively was overdue on six-figure media bills, for which client officials said they had already paid the agency.
Hively said at the time he had trouble remaining current due to the billing system employed by Subway. He also said his shop was undercapitalized when it took on the Subway business.
Hively listed $1.9 million in debt in his original filing, his attorney said last year.