MEC Manchester has held both parts of the media business for the past four years. Previously, the account was handled by MEC in London for three years. According to an MEC insider, the parting of ways came when the agency refused to assume credit liability after the bulk of the business' credit insurance was withdrawn in January.
However, The7Stars, which will now handle the implementation planning and buying side of the business, denies this is the case.
The London agency is believed to have successfully mitigated the credit risk through a deal with Euler Hermes, which includes an element of prepay. Mark Jarvis, partner at The7Stars, said: "We will not be taking any financial risks. Credit is not an issue on this account."
Focus DIY's commercial director Penny Teale, who replaced Gary West in January, said: "The decision to split the planning and buying has been a strategic business decision. We undertook a review and found two suppliers who were better suited to meet our business needs."
Be the first to comment