Lemon in last-minute rescue of Mercatela

HONG KONG: Lemon has acquired digital marketing agency Mercatela's Hong Kong operation, a move which will allow the former to expand its business base with its competitor's clients. With the 11th hour rescue, Mercatela clients will continue to be serviced, while its former employees will have the opportunity to seek employment at Lemon, said Neil Runcieman, chief executive officer of Lemon. He explained that it would also help Lemon, which was a direct competitor to Mercatela, to expand its customer base. Mercatela clients included British Airways, Procter & Gamble Hong Kong and Sony Music Asia. According to Rupert Purser of Baker Tilly, the provisional liquidator of Mercatela, other companies had expressed interest in Mercatela, but "for every reason - ongoing business, employee opportunities and the potential to realise assets - it was critical to act swiftly". "From day one of the liquidation it was apparent that a rescue of the business was the only prospect of any recovery to creditors. In the space of five working days we had entered into six non disclosure agreements and entertained intensive negotiation." The closure of the Hong Kong office would have resulted in 50 people losing their jobs. Mercatela's Singapore, Malaysia, Tokyo and Taiwan offices will not be affected by the closure of the Hong Kong operation, but the offices will be restructured.

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