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.
