DENVER—The recession has claimed its first significant casualty in the public relations agency business, with 35-year-old Denver firm Schenkein announcing last week that it will close its doors and lay off its final 11 employees.
Co-owner Leanna Clark announced late last year that she would be stepping down from day-to-day involvement with the firm at the end of January to spend more time on community work, and this week her partner Christin Crampton Day told reporters that the firm had lost several longtime clients in late 2007 and had been unable to replace the revenue after several clients froze their marketing budgets as the recession began.
"It's a sad day for us here at Schenkein," Crampton-Day told the Denver Post. "It was a difficult decision. I looked at our contracts going into 2009 and the current state of the economy and felt like it was the right thing to do… We started out 2008 challenged, and the timing being what it was with the economy, it was just challenging to turn things around.”
At one time, Schenkein had about 30 employees and annual billings between $2.8 million and $3.2 million and was among the top three firms in the Rocky Mountain region.