The Little Ad Shop That Couldn't

Steve Blamer, one of the most well known executives in the ad industry, knows what it's like to have $100 million to spend--just not what's it like to actually spend it.

Last April, Creston, a relatively small British holding company that owns marketing service businesses, announced that Blamer would be the first C.E.O. of its new American arm. With his title came a $100 million war chest to buy American advertising and marketing firms, as well as the directive to nurture organic growth in the U.S. from Creston's British companies. Here is how Portfolio.com covered the move.

Ah, the optimism of spring 2007!

By December, the situation had changed dramatically. "In light of recent concerns about an economic downturn in the U.S., we have reviewed our acquisition strategy and timing and decided not to pursue such acquisitions at this time," Creston said in a statement. But Blamer still had a job.

This week, however, Creston announced the decision to allow Blamer to step down as chief executive, close its U.S. office, and eat the nearly $1.2 million it spent on the N.Y.-based endeavor.

"The global economic uncertainty and volatility has only increased since [December] and more so in the USA than in most other countries," Creston's most recent statement explains. The London headquarters will "absorb the duties of building the Creston offering to American clients."

Representatives from Creston weren't immediately available for comment.

Blamer was formerly president and chief executive of FCB Worldwide, where he helped lead the 2006 merger between his agency and Draft Worldwide. The combined company, DraftFCB, had 9,000 employees, boasted S.C. Johnson & Son, and Yum Brands as clients, and generated global revenues of $1.25 billion in 2006. Before his stint at FCB, Blamer was C.E.O. and president of Grey North America.

On the London Stock Exchange, shares of Creston closed today at 68.25 pence, down about 65 percent from a year ago.

Willow Duttge