Not getting paid for work rendered is a real bitch. And according to The Wall Street Journal, there’s some serious bitching going on right now.
Monday’s bankruptcy filing by General Motors sent chills down Madison Avenue as the car maker disclosed what it owed advertising and media agencies.
The car maker disclosed that it owed ad and marketing firms at least $167 million as of May 31, according to court documents. One of GM’s biggest creditors, Starcom MediaVest, the media-buying unit of Publicis Groupe of France, is owed $121.5 million, most of it from media purchases made on GM’s behalf.
Media Daily News, reports that Interpublic Group is also owed more than $150 million by the automaker.
That’s a $300 million bag that businesses already short on cash are left holding, or not holding as the case may be.
As dismal as this situation is, I have a suggestion. Free cars for all IPG and Starcom staffers on the GM business.
Seriously, the damn things are gathering dust on a lot somewhere. Pay the agencies in Saabs. Hell, pay them in Pontiacs.