Full-service independent agency Lionize files for insolvency; administrators appointed
Mounting debt has caused full-service independent agency Lionize to file for insolvency just two years after its foundation, Mumbrella can reveal.
The agency – which was formed in 2020 following the merger of creative agency Channelzero and media agency 360DMG – has gone into administration, thought to be owing upwards of $5 million.
CEO of the agency, Mikey Taylor, which was shortlisted for Mumbrella’s Emerging Agency of the Year in 2022 said the coming together of the two agencies in early 2020 has not worked out the way they envisaged, “with external factors creating an untenable trading environment”.
Taylor told Mumbrella the plan is for the two agencies to split back apart, with him and co-founder Aaron Monks both returning to lead each agency.
“Lionize Agency Pty Ltd has undertaken a restructuring process to separate our creative and media offerings – appointing Simon Thorn & Brad Tonks of PFK as voluntary administrators to help us through this transition,” said Taylor in a statement to Mumbrella.
Thorn and Tonks were appointed as administrators at the end of September, after a notice of winding up order application was issued earlier that month in the New South Wales Registry of the Federal Court of Australia.
“PFK is a highly experienced team to help Lionize to help us navigate the restructuring process and are currently examining the trading position of the company with a view to assessing the viability of separate media and creative entities.”
“The agency will continue to operate and deliver work for clients as the process takes place.”
CEO Mikey Taylor
While it is understood the agency has found itself in upwards of $5 million in debt, Taylor said the figure is not accurate.
This comes after Lionize’s contract with client Zambrero was recently terminated. It is believed its contracts with both The Iconic and Pet Circle have followed a similar fate, however both brands declined to comment when contacted.
A Zambrero spokesperson told Mumbrella: “We are limited in what we can say as we are bound by the usual confidentiality clauses in client services agreements. We can confirm Lionize is no longer a current supplier of ours. We have appointed a new media agency and full details will be shared in due course. An announcement will be issued soon.”
Executive chairman, Aaron Monks
Other brands on the Lionize roster include Nudie Juice, Speedo, and Newcastle Airport, with the agency also previously working with the NSW Government.
What was originally a merger to bring together a full-service offering, the founders are now seeking to separate the creative and digital media offering from Aaron Monks’ traditional media business.
Lionize told Mumbrella no staff cuts will be part of the split, with all going with either one of the two agencies.
In 2017, Monks former agency 360DMG and Taylor’s creative agency Channelzero first came together as part of a ‘streamlined agency management collective’ The Assembly, alongside three other agencies.
The founders now say the split process will take between 4-6 weeks in total, and they thanked their staff and clients for their ongoing support as they move through this process.
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Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
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