Leaked documents have shown Fermanagh and Omagh District Council and a Belfast-based advertising company are effectively engaged in a stand-off after a business arrangement was terminated without notice, leading to the withholding of payment for services.
However, the advertising company appears to have become elusive as Council officials made numerous attempts at contact without success, although there was an email in March, 2021, from a member of management who, according to the leaked document, has since resigned.
Closed-session meetings
Details surrounding the issue have been kept from the public, with discussions held in closed-session Council meetings.
It is understood members were presented with a number of options on a potential way forward at the most recent confidential meeting.
The Council had an arrangement with Archer Advertising for the design and placing of advertisements in local and regional press.
However in February, 2020, Archer Advertising abruptly terminated its services, triggering a stand-off as the Council, which at that point owed Archer Advertising £13,800 (excluding VAT), decided to defer payment until a number of matters were clarified.
Council officials established local newspapers are owed a considerable amount of money by Archer Advertising, much of it relating to Council advertising.
Last October, a “discharge payment” to Archer Advertising was suggested along with a disbursement to local newspapers, although it was acknowledged this may not be without risk to the Council.
Prior to that, during 2020 Council officials repeatedly attempted to communicate with Archer Advertising management to ascertain why the arrangement was terminated without notice, and seeking the removal of the Council logo from their website.
Legal Services
The Legal Services Department also contacted Archer Advertising in December, 2020, but they too received no response.
However, last March, an email was received from management member Irwin Armstrong stressing while he had no role with the Council account, he “was in a position” to respond to some queries on behalf of Archer Advertising.
Termination occurred, he said, because working with the Council was “too time-consuming, and there seemed to be internal difficulties around obtaining authority for instructions/approval of adverts”.
This resulted in Archer Advertising having to invest additional time which couldn’t be recovered, as they only charged a 5 per cent fee.
Staff were left in stressful situations, became demotivated, and questioned their employment, the leaked document says.
Disputed
The response also disputed the Council’s attempts to contact Archer Advertising multiple times since the termination.
The leaked document advised members that Archer Advertising had a net liability position of £187,820, as of October, 2020.
Should it go into administration or liquidation, it is unclear if there are preferential creditors such as secured loans or employees, who would be legally entitled in advance of payments for unsecured creditors, such as newspapers.
Following Mr. Armstrong’s correspondence, the Council attempted to secure discharge of funds owed to local newspapers, by offering Archer Advertising an option to pay outstanding costs, upon receipt of an undertaking from their solicitors that they “immediately thereafter discharge all debts associated with council advertisements”.
But Archer Advertising refused, insisting the Council had no authority to seek such an assurance, and requested payment in full by return of the money owed to them by the Council.
Legal opinion
Legal opinion found a refusal to pay could only apply in the event Archer Advertising failed in service provision, or that which was provided was dissatisfactory.
Without fault, there are no legal grounds for dispute.
Members were informed termination of service without notice was not satisfactory, but the legal opinion added: “An explanation has been offered for that.”
Officials remained concerned by: “Potential reputational risk to [the] Council around non-payment of local businesses ... Local newspapers [have] highlighted their concerns around the impact of non-payment.
“They have asked [the] Council to look at options for settlement of debt, which would reduce sums paid directly to Archer [Advertising].”
The documents show Archer Advertising’s status listed as ‘active’ with Companies House, and also indicates numerous officer changes over time, and currently one director.
While Mr. Armstrong responded to the Council last March, according to the leaked document, he resigned in January, 2021.
Members were told Archer Advertising appear to work in conjunction with three businesses, namely VisionWorks (Television), VisionWorks (Interactive) and Studio 56.
All operate out of the same building, and the names of those involved are interlinked.
When the Council’s Legal Services staff telephone Archer Advertising, they are consistently told the company is “no longer trading and the number [dialled] is for VisionWorks”.
Calls not returned
According to the documents, no calls have been returned, to date.
On their website, Archer Advertising are described as providing a: “Full service design and advertising agency based in Belfast, offering inspired and effective design, advertising, TV and radio production and associated marketing services.”
Its client base, as demonstrated by individual logos, show high-profile companies, charities and several councils, including Fermanagh and Omagh District Council, despite requests to remove it after Archer Advertising terminated the arrangement.
Like many companies, Archer Advertising closed down as a result of Covid-19 as they were not considered an ‘essential service’, but a message on the company website indicated an intention “to reopen in as soon as possible, subject to any further Government announcement”.
This was posted as an “update” on March 24, 2020, and remains on the website, with no further update added since.
Auto-response
When Archer Advertising was asked to comment on the stand-off with the Council, an auto-response indicated the recipient was: “Away from the office on extended leave.”
In their absence, there was a message providing email addresses for three others – one of whom was Mr. Armstrong.
The request was forwarded to all three, none of which had responded by the time of publishing.
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