Leading PR firm collapses ‘with loss of 250 jobs’

BELL POTTINGER has collapsed into administration after the tarnished PR firm failed to find a buyer in light of claims it ran a “racially divisive” campaign in South Africa.

Accountancy group and advisory firm BDO confirmed it was notified of Bell Pottinger’s pending collapse on September 8 but was appointed administrators of the once-leading City PR company yesterday. The administrators have not confirmed how many staff have been made redundant, though recent reports suggested Bell Pottinger had 250 employees.

BDO said: “Following an immediate assessment of the financial position, the administrators have made a number of redundancies.”

News of its collapse was flagged, having been kicked out of a leading industry group, ditched by its second major shareholder and abandoned by a number of key UK clients, including Investec, Richemont, Unite and Carillion following a damning report by law firm Herbert Smith Freehill regarding its work for Oakbay Capital. Its Asian and Middle Eastern businesses have also moved to rebrand in hopes of severing ties with its UK parent firm.

The administration only affects Bell Pottinger’s UK operations, BDO said.

The PR firm has been left reeling after details of its work for Oakbay Investments – a holding company for the Gupta family – was made public. A report said that the company had been working on a campaign meant to promote a narrative of “economic apartheid” and the need for more “economic emancipation” in South Africa.