Rankin blames rise of AI as agency files for bankruptcy

The advertising business run by multi-award winning British photographer Rankin has been forced to file for bankruptcy amid claims that the AI-driven technological revolution has essentially “gutted” a lot of creative services agencies.

Initially called Rankin Creative, the agency was launched five years ago but recently rebranded Rankin Group. According to recent filings, the business owes employees more than £300,000 and a further £1m to HMRC.

The company was run by eight key people, including a chief executive, finance director and managing director but it was 100% financed and owned by Rankin, as the sole director, although there was a share incentive scheme.

The agency has worked for Rolls Royce, Unilever, L’Oreal and Samsonite; and has created projects for charities including Women’s Aid and Macmillan.

As a photographer Rankin’s portfolio ranges from portraiture to documentary. He has shot The Rolling Stones, David Bowie, Kate Moss, Kendall Jenner and The Queen to name only a few.

Speaking to The Art Newspaper, Rankin said the agency thrived in its first few years, but began to struggle over the past two due to various pressures, including an unforeseen tax bill, “which meant that some staff did not receive their entire redundancy payments”.

He continued: “The HMRC bill came as a big shock to us when we received the demand. Up until that point, we were looking at a recovery plan or, in the worst-case scenario, a winding down. Even after the demand, I tried to work out a deal, but it was just too late.”

According to the information available on Companies House, £258,000 is owed to trade creditors – with this figure including prepayments of £73,000 for the year, while intercompany creditors are reportedly owed £980,000.

Rankin said: “Whether it was due to reduced budgets around the economy or losing work to programmatic and AI-based solutions, it was a massively challenging period for us and many other services like us.

“Sadly, that is what we were selling: a bespoke creative service around storytelling and brand building. When you combined that, with the lack of face-to-face work and meetings post-covid, it’s been a perfect storm.

“I couldn’t be more disappointed with both myself and the business for not being able to make the agency a success. I put everything I had into it, but it just wasn’t enough to make it work.

“I am leaving the struggle of surviving in this climate to people that I really respect and who are obviously much better at it than I am. I wish them all the luck in the world, as I’ve never experienced something quite as tough as this shift in the creative landscape.”

Rankin’s photography, directing and production business, Rankin & Co, is reportedly not affected by the insolvency proceedings.