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Thorsten Nolte plans revival of agency as he pursues legal route to recoup unpaid client fees

Nolte:

Nolte: ‘Small businesses need to stand up to clients’

Thorsten Nolte, the founder and CEO of Singapore-based digital agency Upfront, has announced plans to revive the business that closed at the end of last year after running into financial difficulties, and take a stand against clients who do not pay their bills.

Nolte, who launched Upfront in 2008, is engaged in legal discussions with Fiat Chrysler to recoup a seven-figure sum he says his former client owes the agency in unpaid fees.

This, he says, he needs to relaunch the company and settle outstanding salary still owed to former Upfront staff.

Talking to Mumbrella from his current base in Europe today, Nolte said that Upfront worked unpaid for Fiat Chrysler for almost a year, supporting the car company while its Asian operation was struggling.

“We did it in good faith, trying to support our biggest client, with the promise that the non-payment would be sorted out. But it never got sorted out. That’s actually the reason why we let people go,” he said.

Nolte clarified that the closure of Upfront was not related to his brief detention for a drug offence in Singapore in October last year, a story that was reported by local tabloid newspaper The New Paper in April, and also by Mumbrella.

“The real reason that we had to let everyone go is because of the money that Fiat Chrysler owed us – and they still owe us a huge amount of money,” he said.

“Because of everything that happened to Fiat Chrysler in Asia – because they were not selling as many cars, because they were not hitting their targets – global made a decision to slow things down, and we were the scapegoats,” he said.

Fiat Chrysler tightened its global procurement policies towards the end of last year after a series of scandals in Australia.

“On top of that, Malaysia Airlines owed us money and still owe us money. I just couldn’t afford to keep people on and carry things on as they were,” he said.

Nolte said that his lawyers have been exchanging letters with Fiat Chrysler over the matter.

“They have stated their position of not wanting to pay. My lawyers have stated that they have to pay,” he said, adding that he has also plans to send a demand letter to Malaysia Airlines over their outstanding fees.

“The amount owed by Malaysia Airlines is much smaller, but is still significant enough considering it is work that we have done for them,” he said.

“Up until that point they had been a good paying client. Obviously they [MAS] are going through issues, as we all know. But we had been loyal to them, and worked relentlessly for them. We are owed money and we will be pursuing it,” he said.

Unpaid fees from Fiat Chrysler meant that Upfront was unable to join an agency collective known as The Marketing Group, which floated last week.

Nolte said that he expects the payment issues to be resolved by the end of the year, and in turn former staff will be paid outstanding salary owed to them.

“People who are owed money will get paid, either through what will happen with Fiat Chrysler, or something that I will have to sort out retrospectively with the new venture,” he told Mumbrella.

Upfront logo

Upfront was a creative and tech agency with offices in Singapore, KL and Manila

On his plans to revive Upfront, the former MEC Interaction APAC MD said that the business would probably be launched under a different name, and with a different business model.

Among the options for the new incarnation of Upfront are as an incubator, or an app developer.

“I’ve written the business plans. What I am working on now is the funding, and that will hopefully come from the money owed to us. If not, I will have to source it from elsewhere,” he said.

Nolte said he wants to return to Singapore to work and live, if he can.

The Brit was detained at Changi Airport for testing positive for cannabis after a random drug test on his way back from Amsterdam late last year.

He had smoked the substance while overseas with his then girlfriend Debbie Wong, a model and club DJ known as DJ Tenashar, who was also detained at the airport. They were both released on bail, Nolte on the same day that he was apprehended.

As The New Paper reported three months ago, Singapore’s narcotics bureau issued a gazette for their arrests after they broke the conditions of their bail. Nolte said he was unaware if the gazette for his arrest was still in effect. “I can’t say, because I honestly don’t know,” he said.

“I am currently talking to my lawyers, trying to work through this, as I do intend to come back to Singapore. I love the place, and I like working there,” he said.

Nolte said that he has learned a lot from the ordeal, both professionally and personally, and if he can negotiate safe passage back to Singapore, he wants to champion fair practice among clients and agencies.

“This has probably been the hardest period in my life, but it’s taught me a huge amount and I’m grateful for the lessons I’ve learned,” he said.

“From a business point of view, one thing that I’ve taken away from this is that, because of the competitive situation agencies often find themselves in, especially small companies, we get taken advantage of.”

“It’s time to put a stop to this, because there is no future in it. And it belittles the value that we add to our clients and to the industry,” he said.

Nolte said it is important for small business owners to “stand up for yourself – don’t be pushed around by clients, or by anyone. We need to stand together and stand up for what’s right,” he said.

“I have been down and out. It was very hard coming to terms with the situation. But I’ve got back up and I’m dealing with the money owed to us, and I’m dealing with the Singapore government to come to some resolution. I’m building things back up,” he said.

Nolte began his career as a media planner buyer at Media21 in the UK. He worked for BrandConnection before joining MEC in 2004. He launched Upfront four years later.

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