Noir Group CEO opens up about mistakes that led to liquidation

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The CEO of Noir Group, the Manchester-based design agency, has written an honest account of the decisions which led to the business recently appointing liquidators.

The agency had appeared to be enjoying a rapid ascent since launching in 2016, winning industry awards and moving into enlarged offices only last April, as well as launching in London and San Francisco.

But last week we reported how the company had commenced voluntary winding up proceedings at the end of February.

And now CEO Anthony Logan – who set up Noir with friend Alex Mellor – has penned a 3,000-word LinkedIn post in which he reflects on the reasons behind the downfall of the business.

In an incredibly open account, Logan said he regretted an early decision to bring in an investor.

“Admittedly we had absolutely no idea what we were doing,” he said. “Neither of us had ever accepted an investment before, we didn’t understand all the big words in the contract and we didn’t have the foresight to understand the impact that investment might have on a young business like ours.

“Nonetheless, after several months of deliberation and consultation, we accepted the investment. In our naivety, I think we saw investment as a sign of success. There is a narrative in the start-up world that taking an investment is a success in and of itself, and I think that’s a narrative that we regrettably bought into.”

He said that using that investment to hire staff was “one of the first key mistakes”, as was a first birthday event held by Noir at The Foundry in Manchester.

“It was expensive, we weren’t clear enough on what our measurable objective was and ultimately it served our ego more than it served the business,” Logan wrote.

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Noir’s former offices at Beehive Mill


He said that another mistake had been to move to Urban Splash’s Beehive Mill, thereby increasing office overheads from £800 to £2,500 per month.

“I think this decision came from a place of both optimism, inexperience and quite truthfully ego. It’s a decision I personally take full responsibility for and one that I totally regret.”

Logan is particularly candid about his unfamiliarity with certain aspects of running a business.

“Quite honestly, I had absolutely no idea what PAYE, VAT, Income Tax or even EBITDA, were,” he wrote. “I’ve never been that good with numbers and I have always preferred to focus my energy on trying to create really great creative work would please our clients. In hindsight, I wish we had appointed a proficient full-time accountant and sought their advice on strategic decisions.”

After debts continued to mount, the business agreed a £5,000-a month repayment plan with HMRC and Logan even agreed a short-term loan with Social Chain co-founder Steven Bartlett.

But the situation spiralled and in December 2018, Logan was advised to take out a Company Voluntary Arrangement in order to repay the company’s debts, but the move allowed Urban Splash to cancel its lease agreement with immediate effect.

“For me, this was the last straw. I had tried my hardest to keep things going, to maintain a brave face and to keep our clients happy, but the business could no longer continue to operate under these circumstances and without a home.”

After beginning liquidation proceedings, the company has now transferred it clients and remaining members of staff – co-founder Mellor having left the company last year – to social agency Roto Ltd.

He finishes: “I write this more excited, happier, humbler and more equipped than ever before. We’re armed with a cautious sense of optimism, light years more knowledgeable than in 2016 and we’re delivering great work for great clients through a reimagined business model that is designed to be sustainable.”


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