The failed arm of Publicis Mojo in New Zealand went into liquidation owing creditors NZ$16m according to administrators McDonald Vague.
Liquidators were called in just five days before Christmas to the Auckland based agency when it could not repay debts, with staff, many of whom were contractors, owed NZ$200,000, of which only NZ$64,000 is secured.
Around 50 staff are believed to be facing a lockout from the agency.
Former Publicis Australia/NZ CEO Graeme Wills was reportedly given the option to purchase the agency, but has decided to start a new agency Joy in partnership with Razor Australia.
It is understood the majority of The Publicis Groupe-owned company's debt is actually owed to the holding group as part of the share purchase for the Australian arm.
It had been trading in New Zealand since 1983, but has faced mounting debt problems since 2007 when it reported losses of NZ$6m, with reports suggesting it had not returned a profit since 1998.
