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Publicitas bankruptcy – business model does not work



The history of Publicitas began more than 250 years ago – at that time still like a German company. The eventual story up to the big scale in the article by RADIO TOP:

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The administrator of Publicitas Urs Boller confirmed to the news agency SDA in the morning a first report from the media portal «Klein Report». He himself had filed for bankruptcy, and Publicitas had done it. Request for provisional moratorium was revoked.

In a rescue test, Publicitas had asked publishers to meet Wednesday. Then, the traditional company sent a communication message, after which the new business model and recovery plan was presented. It said: "Publicitas is fighting for 800 publishers votes."

As the answers were omitted, Publicitas extended the deadline for comments on 1

0-14 May. About 400 or 51 percent of Publicitas publishers would have had to sign a letter of intent to save Publicitas.

However, it was clear before the deadline failed. The employees were invited to a Skype conference drive on Friday morning. The company employed about 270 people in Switzerland.

Publicitas applied for a preliminary moratorium on 3 May. The new business model was part of the restructuring plan already submitted. The core of the concept was a commission model that should reduce the risks for media houses. A debt cut should also be made.

In addition, publishers in the future should be given a 50% share in Publicitas. After all, the company wants to become more transparent in the future, for example by publishing its annual reports.

Publicitas was in trouble after more and more publishers had stopped working with the company. First Tamedia had left, other media houses followed. They complained about the bad habits and breaks. Several media houses and publishing houses, the Swiss media announced that they would find a new society for managing media campaigns.

Like the media companies, the advertising marketer suffers from the marked decline in print advertising. The company has already written several red numbers.


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