Wickens Tutt Southgate was served with a winding-up petition by a creditor, it has emerged. WTS finally paid the 6450 outstanding debt to Colourspace Retouching before the case was due in court on 7 February.
Last week WTS chief executive Paul Southgate denied WTS is in financial difficulties (DW 9 February). He has since said WTS “can work within current limits” on its overdraft.
Colourspace served a statutory notice on WTS on 21 December but the consultancy failed to pay within the allowed 21 days. Colourspace’s solicitor next presented the winding-up petition. WTS then paid the debt and the winding-up petition was discontinued in the High Court. WTS now has to pay legal costs.
Tim Peppiatt, owner of Colourspace, says: “With both sides’ legal fees, WTS probably spent 30 to 40 per cent more than it had to in order to clear my bills.”
A WTS spokeswoman claims Peppiatt failed to chase his invoice, jumping straight to the winding-up procedure. Peppiatt denies this, saying WTS did not return many of his telephone calls.
The WTS spokeswoman adds that although “this one slipped through the system”, other Colourspace invoices were paid.
WTS creative director Mark Wickens says the failure to pay was a “stupid oversight”.
Meanwhile, Southgate says WTS is “in the midst of a major relaunch” as a “brand realisation” agency to compete with ad agencies to influence clients’ brands.