ScienceMagic.Inc closes after 3 years – WWD



London — First it was the collapse of brands, now it’s the collapse of fashion PR companies.

The magic didn’t last long at ScienceMagic, the communications agency co-founded by Daniel Marks, Julietta Dexter and David Pemsel, current chairman of the British Fashion Council. Three years after its founding, the company went into voluntary liquidation with shareholder approval.

In a statement shared with WWD, the company said: “Like many businesses, we are responding to the current economic environment, an increasingly fragile global economic and political climate, current market conditions, sector challenges and increasing costs of doing business. Securing investment was a factor in all of this.” The board of directors has decided to liquidate the business. ”

ScienceMagic has been bleeding money since its inception, according to a report filed with Companies House in the UK. In 2020, it recorded losses of more than £2m, and in 2021 it recorded a further loss of more than £250,000. Accounts for 2022 have not yet been filed.

As reported, ScienceMagic.Inc is a new generation public relations, branding and marketing company that aims to connect the dots between data science, storytelling and digital technology to speak to the next generation of consumers and shoppers. Founded in 2020.

It was built on the foundations of Communication Stores (TCS), which has been in business for over 25 years with clients such as Versace, Victoria Beckham Beauty and Goop.

TCS was one of fashion’s top PR firms, with many clients in the UK, Europe and the US, but Marks & Dexter brought on Pemsel and changed its name in 2020.

As reported, Marks parted ways with ScienceMagic.Inc over a year ago and now runs his own business, Townhouse Consultancy Ltd., and has been working with Donatella on communications strategy and building his global profile. – Represents a small group of high-profile creative entrepreneurs, such as Mr. Versace. .

A person working for a competitor claimed that ScienceMagic had “stopped doing its basic job.” We’ve taken customers away from them who simply can’t cover the land. ”

ScienceMagic.Inc acknowledged in a filing with the Companies House that there is continued uncertainty regarding the performance of a number of its customers, which may affect the company’s future operations. .

Like many businesses, it took advantage of government support schemes during the lockdown, including furlough, payment deadlines, coronavirus business interruption loans and turnaround plan loans.

In 2021, Science Magic expected to return to growth in fiscal 2022. Directors said they were confident the company had sufficient resources to continue operating for the foreseeable future.

The company is the latest British fashion company to go bankrupt, as many businesses struggle to stay afloat due to the pandemic. Earlier this year, The Vampire’s Wife, La Perla, Christopher Kane and Julien MacDonald all faced various debt crises that threatened the future of their businesses.

British government figures show the number of business bankruptcies in the second quarter was the highest since the same period in 2009 following the global financial crisis. The number of bankruptcies in the second quarter also increased by 13% compared to the same period last year.

Marco Piaccudio, head of insolvency firm FTS Recovery, which backed Christopher Kane and Julien Macdonald’s businesses, says the situation is only going to get worse.

“This is a very troubling set of circumstances to survive in, and I think in the last nine to 12 months we’ve started to see trends that are likely to continue for at least the next two to three years. “I think it’s going to last for a period of time. It’s going to get more painful before it gets better,” he told WWD in a summer interview.

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