A feisty showdown is looming between listed marcoms group Photon and its ousted former CEO Matthew Bailey as the latter prepares to launch a new field marketing start-up when his non-compete terms expire in July.
The move comes at a delicate time for Photon as it tries to unravel its debt burden after an acquisition spree by Bailey and former executive chairman Tim Hughes. Bailey and Hughes remain Photon shareholders.
Photon rivals in the field marketing sector say there are already signs of nervousness among Photon’s client base, with major field marketing contracts including Microsoft and Procter & Gamble shifting to competitors late last year.
Photon executives would not comment but have told analysts they are relaxed about the account losses because of new business wins and new operating efficiencies in the field marketing division which will produce a better earnings figure for 2011.
The field marketing industry, however, is bustling with speculation about Bailey’s return to the field marketing industry with a new start-up, saying he has been active with major corporates flagging his new venture.
A website, thebaileyboys.com.au, also hints at a venture, displaying a countdown clock to 1 July and one line proclaiming “The Bailey Boys are coming”. Stuart Bailey, who was running Photon’s field marketing group until a sudden exit late last year, is expected to join his brother in the new venture.
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