The 50-person staff of Wolf's New York office were told Jan. 30 that the shop was closing by Paul Kelly, CEO of Wolf Group. Mr. Kelly resigned from the company yesterday.
Employees in New York were let go without severance, according to an executive familiar with the situation. A spokesman for the agency declined to comment.
The 35-person staff of Flavor Advertising in Toronto were informed yesterday of the agency's closing.
Wolf Group had revenues of $37 million in 2002, according to Advertising Age estimates. Of that, $32 million was generated in the U.S.
Wolf's office in Cleveland will continue to operate, according to a company statement, while its offices in Rochester, N.Y., and Atlanta are being bought out by local management.
Chairman Larry Wolf, who with his wife, Mary, co-founded Wolf Group, in a statement said "this past year was extremely difficult for us financially which unfortunately led us to this decision."
Wolf Group New York's client's include lawn-care marketer Scotts Co., Equal sweetener and Mott's fruit drink, among others.
A Scott's spokesman said the account is "sticking with Mike's team," referring to Mike Rogers, the president and executive creative director of Wolf Group, New York, who is starting his own agency in Manhattan, ML Rogers.
The fate of other Wolf Group clients is unknown at press time.
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Jack Neff contributed to this report.