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Digital agency formerly known as Topia Project calls in administrator

The digital marketing agency formerly known as The Topia Project – run by Nyree Corby – has been placed into voluntary administration with debts of more than $1m.

Corby told Mumbrella: “I’ve done what I’ve done to save as many jobs as possible . There have been no client casualties.”

According to the Sun Herald newspaper, the agency owes 45 creditors a total of $1.4m. Details of the appointment of an administrator appear on the website of the Australian Securities and Investment Commission.

The Topia Project name and its assetts has been passed on to a company called Direct Media Consulting.  The company now in adminstration was renamed from Topia to CHD Marketing Services. Corby is now CEO of the new, debt-free entity, called The Topia Project. The agency’s 16 staff will continue to work with Topia’s previous clients. Corby does not currently have equity in the new entity, although her contractual arrangements will potentially allow her to earn equity as the new company moves forward.

Today she issued a statement saying:

“I am deeply distressed about the financial problems which forced CHD Marketing Services Pty Ltd into voluntary administration. The financial problems were caused by a combination of my youthful optimism, some bad debts and poor financial advice. CHD has entered into a Deed of Company Arrangement after approval of its creditors.

“Like others, I probably tried to grow the business too fast in this economic climate and have paid the price for my enthusiasm. At a time when extended payment terms are required by many businesses, CHD lacked the financial backing to be able to service this and working capital requirements at the same time.

“I am  now a staff member of a new group, Direct Media Consulting Pty Ltd, trading as The Topia Project, owned by a group of shareholders who have great enthusiasm and financial skills to take us forward, despite continuing volatile economic conditions. The leaner DMC team are winning new accounts, with the latest being BetChoice, Without Surgery – Lipomassage and dot com startup, Big Foot Oz.

“Solid, stable, well funded and well resourced; The Topia Project will continue to provide a results-driven marketing approach for our clients and can achieve our vision of being the new breed of agency required for today’s media environment.” 

Topia’s website lists its current clients as including Sensis, UBD, Village Roadshow, Dyson, Bite Me burgers, Centrebet, RM Williams and the Canadian tourist body. It also features case studies for clients including the Starlight children’s charity, News Ltd and Coca Cola Amatil. However, Mumbrella understands that the departure of Canadian tourism as a client was one of the triggers for Corby to put the agency into administration.

Late last year, Corby was named NSW Telstra Young Businesswoman of the year. (The page giving her citation on the Telstra website appears to have been removed, however, a cached version can be viewed via Google). The Sun Herald quotes a Telstra spokeman as saying that all of the problems for the Topia Project came after the award was decided. However, Corby had previously admitted to cash flow issues when questioned about them much earlier in 2008.

Topia also released a statement from Adam Wakerman, director of Direct Media Consulting. He said: “We are excited about Direct Media Consulting’s purchase of the Topia name and business model. Their approach to marketing is not only different but importantly provides a solution suited to the recession and changes in the media environment. We are pleased to be in a position to bring long term stability to the agency and secure the jobs of its’ staff. Our goal is to double the size of Topia in the next 12 months and I’m very confident that we will achieve this simply in supporting Nyree’s exiting vision with the financial and operational support required to take the business to the next stage.”

There has been industry speculation about Topia’s health for some time. Unfortunately, for legal reasons, commenting will not be directly available on this particular article. If you do wish to comment, email tim@focalattractions.com.au and we will publish what we are legally able to.

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