The Marketing Group splits with Black Marketing boss Chris Reed – ‘Nobody will shed a tear’
The Marketing Group has acrimoniously split with one of its founding agencies, Black Marketing, after the chief executive officer of TMG claimed it was not a business he “would have acquired” had he been around at the time.
Adam Graham, CEO of TMG, claimed Black Marketing was a “loss-making” enterprise and that its colourful founder Chris Reed drew too much “negative attention” to the company during its rocky first two years.
TMG’s CEO on Chris Reed’s exit: “I doubt anyone will shed a tear at his departure”
In a company statement, TMG described Black Marketing as a “specialist Linkedin marketing agency that primarily worked for SMEs” that is “not considered appropriate to be part of TMG”.
TMG also said it is currently “considering its options” regarding potential legal action against Reed. Mumbrella Asia understands this is related to Reed allegedly shifting his focus towards his other personal branding ventures above and beyond Black Marketing.
“I am very pleased that we are now reaching the end of the clear-up operation and that we can hit the ground running in 2018,” Graham told Mumbrella Asia. On Reed personally, he added: “The negative attention Chris generated sparked strong criticism from within the group and from our shareholders.”
Going out of his way to emphasise that his comments were on the record, Graham added: “I doubt anyone will shed a tear at his departure”
Graham, who came on board TMG in November 2016 – five months after its launch – said of Black Marketing: “It is not a business I would have acquired”
Reed, who previously delighted in billing himself as the “only NASDAQ-listed CEO with a mohawk”, was one of four companies bought by TMG’s founders Jeremy Harbour and Callum Laing – in a deal that gave him 18.65% of TMG’s 14.4m shares.
Described as an “agglomeration model”, the company was intended to allow agencies to be part of a network, but still retain their autonomy. The company was listed on the First North Stock Exchange in Sweden in June 2016, with its share price soaring from an opening price of €1 to a remarkable €9 on August 1.
However, over the course of last year the share price plummeted to just €0.34c despite the best efforts of Graham – a seasoned marketing executive, who drafted in a new board of directors and relocated the company’s headquarters from Singapore to London.
Speaking to Mumbrella Asia in response to Graham’s comments, Reed denied that Black Marketing Singapore had been a loss-making enterprise. He said he resigned from TMG in October due to the company’s refusal to “put any money into the business”.
“I understand why Black Marketing is not a company [Adam] would buy,” he said. “He’s trying to create a global media network. We don’t buy media; we do LinkedIn marketing. It doesn’t fit at all. It became clear [Adam] didn’t like it. He didn’t like the fact I had a personality and had made comments on [Mumbrella Asia’s] site. He doesn’t get entrepreneurs.”
He added: “Since TMG’s new board took over, they have tried to make it more corporate. But they haven’t got a clue what’s going on in Asia. All the board of directors sit in London. Jeremy and Callum’s idea wasn’t quite the right model, but neither is the current plan of turning it into a mini-WPP.”
“He doesn’t get entrepreneurs” – Reed on TMG’s CEO Adam Graham
On the lawsuit threat, he said: “If [Graham] brings it on, I’m ready and my legal team are ready to strike back. He’s just using bully-boy tactics.”
At TMG’s height, Reed’s fortune was worth €24m (S$38m). However, Reed has since sold two million of his shares and given away a million as part of a divorce settlement. Today, with the share price hovering at €0.34 his 1,016,150 shares are worth just €243,876 (S$390,000).
However, although Black Marketing Singapore has closed, Reed said the brand was active in a number of other global markets. Meanwhile, the UK-born marketer recently set up three new brands to be housed under his company All Black Ventures. These include The Dark Art of Marketing – for personal branding, Mohawk Marketing – for TripAdvisor marketing, and Chris J Reed Mastery – a series of personal branding masterclasses.
The company is said to currently employ 25 people across the board. Reed claimed he was able to set up the competing companies despite opposition from TMG’s board, due to its lack of stipulation in the founding members’ contracts. Graham has denied this and said there was a non-compete clause in the founders’ charter.
“TMG only bought Black Marketing Singapore,” said Reed. “All the other Black Marketing operations were making a lot of money and were very successful. The brand is very strong. Even though we have closed down Black Marketing in Singapore, we didn’t lose a single person or client.”
On the lessons he learnt from his experience with TMG, Reed added: “Not in one million years would I sell again. It’s been an interesting journey, but I like being independent.”
Eleanor Dickinson is the editor of Mumbrella Asia. Eleanor joined the Asia platform from Dubai, where she acted as senior reporter for Campaign Middle East.
Does Reed do any personal branding consultation? Does he use his own example as a case study of what not to do?
Anyway, Trip Advisor marketing :))
ReplyI think Mohawk Man is running out of platforms. Ah, “Trip Advisor marketing” is too funny for words 🙂
ReplyI don’t know what to say. Couldn’t have happened to a nicer guy!
Reply$38mil to $370,000!
ReplyThat’s some haircut.
ha ha
Chris “what’s the downside?” Reed
ReplyWell, what goes around comes around for a man who seems to consistently – and deliberately – court controversy.
For insights into Black Marketing and how it has been run, read the reviews – and the maturity of the leadership’s responses – on Glassdoor. https://www.glassdoor.com/Reviews/Black-Marketing-Reviews-E1138940.htm
For someone who claims to be an expert in personal branding, the line that comes to mind is “physician, heal thyself”
ReplyBelieve me it’s a lot worse than what you’re reading on Glassdoor. Much worse.
ReplyOh my, the music did stop. Hate to tell Chris, but I think the cost of litigation with Adam Graham from London, UK (one of the highest costs for litigation in the world) will burn whatever’s left of those Marketing Group shares he has…
ReplyHe’s everything that’s wrong with marketing.
ReplyLOL, agree, couldn’t have happened to a nicer guy,
Frankly, I never got the sense that Black Marketing was a real agency. More of a “front” for Chris’ personal revenue-generating activities – books, personal appearances, training seminars, “rock-star” (give-me-a-break) tours. At least that was what all their industry marketing seemed to be exclusively focused on.
With most agencies, they talk about what impact they have made on their clients’ business; with Black Marketing, all they talked about was Chris. Eventually, that has to unravel.
ReplyBrilliant! Was wondering how long this would take. He’s just a load of hogwash (wonder when he’s going to pop up and be his usual defensive little self) and no wonder he’s had to close the company down. Poor ex-wife, her 1m shares are worth pittance. Trainwreck waiting to happen. Had a slew of emails from him on Linkedin promoting his amazing ability to turn around my business and help with marketing. Maybe he needs to start with his own company first? Loser.
ReplyProof, if it was needed, that you cannot build a sustainable business on a haircut alone.
“The only Nasdaq CEO with a mohawk” was the (often-repeated) claim.
That might be relevant, if clients chose their agencies based on a CEOs haircut. Regrettably, they do not.
ReplyHe still walked away with a lot of money from the whole exercise. $370,000 is the equity he has left but he still cashed out a chunk.
Yes the business might not have lasted but I don’t see him learning any hard lessons.
ReplyThat depends entirely on when he sold his shares and at what price. I hope it was a lot, because – based on the consensus of comments here – he may struggle to get backing on a new venture.
ReplyDoing some math..it was not too bad but not amazing:
1. Got 18.8% of 14M shares when they IPO so about 2.6M shares
2. He had a one year lock-up period so based on IPO date the 1st he could of sold was June 8th of 2017 when stock was 0.425 Euro
3. Based on this article he sold overall 2M shares.
4. Assuming he sold all on the 1st date that nets about 850K Euro.
5. I doubt he was able to sell all on 1st date as the volume would not support 2m block hitting all at once.
So not bad but not crazy but if he has to go into legal fee based on this article this whole thing might end up costing him money. Funny world.
Reply@stock:
if you check correctly, he has been able to sell 2M of his shares before his 1 year lock-up ended
ReplyI wonder how this was possible, but then again.. I assume their financial report is actually correct
Met him twice and he is such a nice person so I’m a bit surprised of him being outspoken. He is definitely a good person and very few (on none at all) office issues with him.
BTW, I am talking about Adam Graham. Not Chris.
ReplyHAHAHAHAHA
ReplyIn an era when marketing is seeking to professionalize itself, increasingly needs to earn its seat at the boardroom, this guy is ultimately bad for our profession. #timesup
ReplyAdam Graham is right, no-one in this industry will miss Chris Reed.
He seemed to focus his energies on stirring-up controversy to generate free publicity for his company, on the basis that “no PR, is bad PR”.
Read the comments above, Chris – do you think this will drive more business for your company; you claim to be an expert at managing people/companies online brand presence, yet have a questionable industry reputation yourself.
Mumbrella – stop pandering to this constant need for attention, you are doing your own industry standing no favors
ReplyHe needs to shut down the business and stop this marketing bull using LinkedIn logos and TripAdvisor logos. Surprised that there isn’t a lawsuit on the intellectual property of things.
ReplyThe only thing chris has mastered is proclaiming he is the king of LinkedIn… and as for his Mohawk it’s gross and needs a completely buzz off very urgently. Yuck.
His time will come – karma is a cold hearted bitch.
ReplyIt’s a free market!
ReplyThere’s nothing to stop Rightous Reed from hawking his blend of snake oil (I mean) dark arts.
Just as there’s nothing to prevent his clients from hiring him.
After all, there’s a sucker born every minute and caveat emptor.
I really hope they remove him as an SMU mentor.
Reply“The only Nasdaq CEO with a Mohawk”
He fails to mention that it was the Swedish Nasdaq, not the US.
And fails to mention that the company listed on the Nasdaq was TMG, not Black Marketing (the company of which is CEO).
So the only truthful element of that statement is that, yes, he does have a Mohawk. Congratulations!
Credibility is everything in this business.
ReplyLast I saw the mohawk was gone! So he doesn’t even have that going for him – if it ever did…
ReplyHe also says he is a (twice-over) international best selling author.
Would love to see his sales numbers.
ReplyYes would love to see his numbers too! Self proclaimed “International best selling author” Why haven’t I seen any of his books at bookstores?
ReplyLol. The books are distributed for free at his unattractive talks where even then he has to try and lure the crowd to ask questions by giving a free book. Even then, not many raise questions.
ReplyThe schadenfreude is sweet.
ReplyWhat goes around comes around!
I am gald for this article! People should know the truth and stop believing everything.
Replyinteracted with him once, had to control my eye rolls each time he speaks.
ReplyI am wondering if anyone realizes that the comment about Black marketing business being closed down is worth arguing?
ReplyIf you do a quick google search, he is apparently still running the show. And I am starting to judge all the clients who have decided to come on board on this ridiculous business with him. Did they not do their due dilligence?
He needs to really stop what he is doing. If you take a peek at his LinkedIn profile, his posts are ridiculous. Desperate for viewership. He doesn’t understand the difference between Facebook and LinkedIn.
Someone please help him. He really needs help.
I really wonder who are his clients? They must be like him.
ReplyHAHAHAHAHAHAHA
ReplyHis customers are, typically, small businesses/start-ups/entrepreneurs.
He targets them via the BritCham/speaking series/seminars etc. For example, he currently offers a one-hour consultancy for all new BritCham members.
http://www.britcham.org.sg/membership/membership-offers
From there, he presumably gets a steady stream of naïve small businesses, who know very little about marketing, and are ripe for selling Black Marketing’s services.
I don’t get a sense that he has many/any Enterprise customers. They have professional marketing departments, will do the due diligence and don’t choose an agency simply because the person has a Mohawk and a punk attitude/dress sense.
ReplySeems like kicking someone when they are down is quite a popular sport. Whatever your opinion of Chris is, piling on him like this doesn’t do anyone any good. If you feel he is a fraud then isn’t what has happened to his businesses and the disintegration of his relationship with TMG the comeuppance everyone seems to feel he deserves? Let the man lick his wounds and direct your energy towards something more positive and constructive would be my advice for what it’s worth.
ReplyShameless individuals are never down. This is an open platform to share our views and also educate the public about his businesses so that they do not fall prey to it.
People should be open to criticisms or whatever comes their way. That’s the “beauty” of notorious publicity.
ReplyThat’s Chris Reed’s motto and he will do anything/say anything to draw attention to himself and his company.
He is now finding out that it also works in reverse.
ReplyAndrew,
what you are experiencing is the long-brewing, pent-up frustration of an industry that has grown tired and frustrated with the antics of this self aggrandizing, self-publicist.
ReplyWhere’s the fun in that?
ReplyHave your say