Gala bingo Hires Ad Agency Engine
29th January, 2010
Gala has hired London advertising agency, Engine after a three way pitch against TBWA\London and Iris to handle its £8million advertising budget.
Hiring engine has put an end to Gala Corals current relationship with The Red brick Road who since December 2006 has handled the company’s above the line activities. Gala has also ceased working with The Red brick Road’s digital unit, Ruby, who handled the online business.
It is believed that the Engine group will handle all of Gala Coral’s advertising including below the line activity which was previously handled by Tequila\London. Consolidating advertising spend into one group marks the attempt by the gambling company to reduce costs amid financial difficulties.
Gala bingo has been forced to close six bingo halls this year due to financial problems and is thought to be close to securing a debt for equity deal which could write of £540million worth of debt.
In return for the cancellation of its debt, Gala’s joint owners, Candover, Cinven and Permira, will be forced to relinquish up to 50 per cent of their stake in the group.
By Faye
