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MORPACE to Close Most UK Operations
The UK business of research agency MORPACE is in trouble with all staff in Britain (bar six) having been made redundant at the end of last week and creditor's letters sent out.
MORPACE in the UK was established in 1996/7 and has built up sector expertise in telecoms, automotive and financial services. Specialist fieldwork agency Warner Fox was acquired in 1997, now known as MORPACE Direct. The agency is owned by MORPACE International, based in Detroit, Michigan, one of the largest privately owned market research organisations in the US with sales of roughly USD50 million annually.
The parent company, having 'reviewed its operations in the light of other problems in its group... have concluded that the business should refocus on the core of the Automotive division; all other divisions [including the Direct and Telecoms divisions] to be closed or sold'.
Reportedly all MORPACE staff in the UK have been made redundant with the US parent declaring that it intends to move forward with only six staff left in the automotive sector division. Creditor's letters have also been sent out proposing a Company Voluntary Arrangement with Moratorium.
The latest management accounts are for the first quarter of 2003 and reveal a loss of £178,000 on sales of £666,000. Delays to projects during Jan to March are cited as one of the immediate reasons for the decision.
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