Barkers' Scottish arm closed as struggling parent sold

Published on Monday 29 June 2009 21:44

THE Scottish PR, advertising and social marketing divisions of marketing firm Barkers have been shut as its parent company fell into administration.

Around 50 jobs have been lost north of the Border as BNB Recruiting, the parent company of Barkers Scotland, collapsed.

It was bought yesterday morning by HR consultancy firm Penna Consulting for 8.6 million. Barkers' recruitment advertising business was taken on by the new owner.

The Scotsman has learned that all staff working in the advertising and PR businesses of Barkers Scotland were made redundant last week, ahead of the acquisition. A former member of staff, who asked not to be named, said: "We came into work one day last week and we were told that we were all to lose our jobs. It has all happened very quickly."

It is understood the Glasgow office is to close, while a small number of recruitment staff will work from Barkers' Edinburgh base. The company will now trade as Penna Barkers.

Last year, it employed around 85 staff north of the Border, but it is understood that only a handful of Scottish workers will remain – in the recruitment advertising side of the business.

Barkers, founded by Charles Barker in 1812, specialises in social marketing, recruitment advertising and PR, working on a number of high-profile public sector campaigns.

These have included the anti-domestic abuse Behind Closed Doors campaign for the Scottish Government.

The advertising industry has been hard-hit by the recession, but Barkers is one of the first major casualties north of the Border. Although it is part of the overall Barkers group, the Scottish operation had been trading semi-autonomously.

Last year, Edinburgh-based agency 1576 folded following a period of managerial turmoil, but its closure was not thought to be a direct result of the downturn, which was in the very early stages at the time.

A memo, sent out to Barkers' remaining staff yesterday, said: "The board of BNB Recruitment Solutions appointed administrators and the company has gone into administration. This morning, Penna bought the business and the assets of the Barkers Group from the administrator."

Barkers has been bought up by Penna Consulting due to what its new owner described as "excessive debt" and "onerous leases".

But Penna added that the company was "sound", adding that it had produced positive earnings before interest, taxes, depreciation, and amortisation in 2008.

Penna spokesman Trevor Merridan said: "There is a fantastic recruitment communications business in Scotland and we plan to invest in and expand that in the future."