The agency announced today that it was going into liquidation after what it described as a run of misfortune, including the loss of the 拢4m Kwik-Fit account, which shifted to BMP DDB in April, and the closure of its London office in June after only a year of operation.
To add to its woes, at the beginning of this month it also lost the 拢4m account for Emap Performance to Karmarama.
In a statement issued to the press, a spokesman for the agency said: "We opened in London at the time of the economic downturn and this, coupled with the loss of a couple of key clients in Edinburgh, put too much strain on us. We, therefore, had no option but to close."
The independent Edinburgh shop was founded in 1985 and has around 80 members of staff. Other clients at the shop included the Scottish Executive, for which it worked on education, health, justice and transport; Highland Distillers, makers of Highland Park whisky; and the Orkney Tourist Board.
The London office opened in July last year, after Faulds bought the independent agency Malcolm Moore Deakin Hutson -- a move that is thought to have stretched the agency's finances too far.
When the advertising industry failed to improve this year, and with the loss of the Kwik-Fit account, Faulds could no longer afford the running costs of its London office. It was not helped by the unexpected departure of the joint creative directors Tony Malcolm and Guy Moore, who defected to Wieden & Kennedy London in June.
The loss of the creative duo was a real blow to the aspirations of the Edinburgh-based shop. They had been key to its plan of building a creative reputation in London.
The agency refused to comment on what would now be happening to the existing staff or clients. It is owned by Dennis Chester, chairman and chief executive, who led a management buy-out two years ago.
"It is a very sad day. Over the years we've had some great clients and some very talented and capable staff. We'd like to thank them for their support, loyalty and commitment," the agency said in its statement.
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