Recently noted by AdAge as the Comeback Agency of the Year, Madwell, is apparently not only not coming back, but is going down in flames.
The Brooklyn, New York-based agency has delayed payments to multiple vendors, and is three weeks late on some employee salaries as well as facing eviction from its Denver office. Additionally, Madwell is taint deep in a lawsuit with Bank of America, which accuses the agency of allegedly not paying a $4 million loan that was due last year. One vendor has said that Madwell owes them $100,000 across 10 months. Of course, this also means a domino effect of delayed or late salary payments, and potential more lawsuits.
The agency’s co-founder Chris Sojka, now sole owner of the agency following a lawsuit with co-founder David Eisenman has confirmed the financial state of the agency. He has stated that part of the problem is the loss of the agency credit line which has caused major financial problems since most agencies work off revolving credit lines. He’s mentioned that he used his own personal money to help the agency but no one knows how much.
In its AdAge A-List entry, Madwell reported to Ad Age $58 million in projected 2024 revenue. “We stand 100% by the numbers we submitted,” the agency stated, adding that they were “verified by an external accounting firm.”
How much has that $58M actually come through though? With clients like Visible, ELF Cosmetics, and Verizon I wonder if any of these clients are running for the hills. Also how much talent is jumping this sinking ship? Back in 2022, they laid off 10% or around 160 people.
Snitchers let us know in the comments what the vibe is there now.
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