MERCADEO Versión en español
Commonground/MGS closes its doors after a financial dispute
Manuela Walfenzao| 8 de diciembre de 2015
The Commonground/MGS network was born in Fall 2014, when Commonground, the agency based in Chicago and MGSCOMM from Miami joined forces to create the world’s newest holding company. The business lasted only a year, since this week the company informed that they ceased operation after a financial conflict. The future of all the parts involved still isn’t clear. The company’s official statement says: “The agency known as Commonground/MGS is no longer operating as that entity. Circumstances beyond the agencys control, namely the adversarial relationship between the holding company, PCH Communications, and their lender Fifth Third Bank have caused this major disruption. The entire agency was completely surprised by the banks actions. While this situation has been very disturbing to the entire agency, the senior leadership team is diligently working towards viable solutions.”Last week a report pointed out that the agency had filed for bankruptcy and attempted to liquidate all its assets. But a company spokesperson contradicted this information and reported that all the Commongorund/MGS accounts are frozen.Executives continue handling the relation with current clients and possible investors. Some creatives have been working voluntarily since they announced the news. The vast majority of the company’s staffers are no longer employed, although the company is attempting to keep their teams in New York, Chicago, L.A., Miami and Houston.
