Long time advertising agency founded in 1972 has been asked to shut its opperations. This is after failing to pay SG$1 million in debt to local publishers Singapore Press Holdings (SPH).
The agency was founded by Vince Khoo, the father of Adam Khoo, a renowned business owner and motivational speaker.
According to the ST article, the move came after the agency failed to pay the judgement debt order by the High Court two months ago. The lawsuit was filed in March this year after the agency failed to pay the advertising fees owed. In September, a winding up application was filed against Adcom on the basis of the agency’s inability to pay its debts under the Companies Act.
In response to an article by The Straits Times about the closure, director and shareholder Khoo posted a lengthy Facebook post addressing the issue where he said blamed it on clients not paying updue to tough economic circumstances.
“The funny thing is that when the company’s clients do not pay, but Adcom has to still pay SPH for the bill of over SG$4million. The clients get away scot-free, that just how it is,” he said. Khoo added that Adcom has also done work for AIA Trust, M1 and the Ministry of Family and Social Development in Singapore. Read the full Facebook post here:
In the post, Khoo also criticised the local paper for mentioning the company he founded and clarifies that he is currently director and shareholder of Adcom. He currently owns Adam Khoo Learning Technologies Group which specialises in children’s education.
“I don’t know what SPH has against me but they decided to report that Adam Khoo’s Company was being sued for SG$1million , knowing full well that I do not run Adcom at all (though I am technically a director and shareholder),” he said.
Clients not paying up is an issue the industry has long struggled with. While it is a pertinent issue for both network agencies as well as independents, it is tougher on the smaller players. For these smaller agencies, taking legal action is also sometimes not viable due to the fees it can lead to. (Click here to read how local agencies tackle the issue)
The winding up application is scheduled to be heard on Oct 7. Marketing has reached out to Khoo for a statement.