Julia Reed's company Harry Nash has ceased trading and director Ringan Ledwidge has quit the outfit to form his own company with his long-standing producer Sally Humphries.
There were angry scenes at Harry Nash's London offices yesterday (Monday) when creditors, including studios, sparks, editors and cameramen, some of whom were owed upwards of £50,000, arrived at a meeting with executives of the company only to be told that Reed would not be attending after all.
However, this morning Reed sent shots.net a statement saying that meeting creditors' debts would be a priority.
"My immediate concern is for our creditors and immediate plans have been put in place to meet as many demands as we are able, as quickly as possible, with as much clarity as possible," she said.
But at this stage it is unclear what assets the company holds or what likelihood there is of creditors recovering outstanding debts. The status of the company is being evaluated by Begbies Traynor who did not return calls. More information on what action is to be taken is expected shortly.
Meanwhile fellow executive Helen Williams, the company's head of production, is believed to have left England for Canada last week to work on a shoot with Fredrik Bond in a freelance capacity.
Harry Nash has been warning that it was facing a restructure but had portrayed this as a streamlining of the roster, giving little indication of its dire financial straits. However, its financial report to June 2001 shows that on a turnover of £14 million, up by over three million from the previous year's activities, the company had made a loss of £609,215, against a profit of £160,024 in 2000. £249,943 was sunk in office refurbishments alone.
Alongside Ledwidge Harry Nash held the representation to Tony Kaye, Erik Van Wyk and the Guard Brothers. Kate Elson, four and a half years in the business, left in August last year to form Bikini taking Andy Morahan, another key high-rolling director with her: Morahan alone is alleged to be worth a £4 million in turnover per year. Meanwhile Jake Nava signed to FM Rocks this summer and has concentrated on the US market since, and Mat Kirkby defected to RSA two weeks ago.
Elson told shots.net: "Julia is a really honest woman and this is a tragedy all round."
Stephen Davies, chief executive of the Advertising Producers Association, said: "It is a shock that a company that established itself so quickly and so well should suffer this end."
Robert Campbell, head of Outsider, said: "What Julia was unquestionable good at was spotting talent and getting that talent working. Unfortunately she obviously didn't couple that with being able to run a company successfully."
Creditors were less forgiving. Ray Coates, the director of photography who is himself owed just short of £10,000, told shots.net: "I'd like to speak to Julia. A lot of people want to speak to Julia. How could she demand such total reliability from crew and then run that company into such a state of disrepair? Anyone who runs a company has to have a responsibility for the people they employ.
"I don't expect to get paid now and it's not going to ruin the rest of my life but it will effect the way that I talk to companies in the future."
Although it was announced earlier this year that Harry Nash associates Ringan Ledwidge, Sally Humphries, Helen Williams and Claire Neate were all being handed shares in the company, Reed remained in the position of sole director.
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