Troubled WPP creative agency The Campaign Palace has been absorbed into JWT with the renowned Palace name to disappear in Australia.
All existing clients and staff will be moved into JWT's Sydney office from 1 July. The Palace's Melbourne staff have already been integrated into Y&R Group in Melbourne.
Accounts moving into JWT include Bayer, Panasonic and Smartraveller. JWT in Australia is 51% owned by WPP and 49% owned by STW.
JWT Australia New Zealand chief executive John Gutteridge said: “This move is designed to give Palace clients and staff the benefit of added resources to continue to deliver the exceptional work and results that the Palace has long been renowned for.
“There was a need for greater resources to be available to Palace operations and with no conflicting clients, moving into JWT makes perfect sense. We have nothing but respect and admiration for the role the Palace has played over the years in shaping the Australian advertising landscape and we are very much looking forward to working with both their clients and staff.
"A great deal of consideration needs to be given to what is one of the industry's most iconic agencies, so while The Campaign Palace name will not be used at this stage, this may change in the future."
The Campaign Palace has been floundering in the market following a series of high-profile client departures in the past two years including Westpac in September 2010. Other client losses include Target, Quit Victoria, Bonds and Domino's.
Reports of chief executive and chairman Mark Mackay's exit surfaced last week. Former managing director Michele Teague left the agency in August 2011.
Chief creative officer Reed Collins will move over into JWT but it's not yet known in what capacity. Mark Harricks remains JWT Sydney executive creative director.
Rumours of a potential end for The Palace has been making the rounds in the ad industry for months, particularly after the loss of Target. One industry insider had previously speculated the agency was likely to be folded into another WPP agency but at the time had signaled it might be Grey.
The changes only encompass the operations in Australia and will not affect The Campaign Palace's Jakarta office.
“JWT’s take-over of The Campaign Palace Sydney applies only to Australia and has no bearing on The Campaign Palace Jakarta, which is a flourishing and exciting young agency. We are extremely proud of The Campaign Palace Indonesia’s achievements and look forward to its continued growth and success," said Matthew Godfrey, President Y&R Asia.
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