Aussie digital pioneer HotHouse closes shop – over 50 laid off after loss of major client Toyota
January 15 2015, 2:08 pm | | 18 Comments
Pioneering Australian digital agency HotHouse Interactive, which has been in business since May 1994, has closed its doors.
One source told CB all HotHouse staff – over 50 in all – have been laid off. The cause of the collapse appears to be the loss of major client Toyota.
Repeated CB calls to the agency have all gone to message. The company’s current executive director is Rob Olver but he could not be contacted. The last entry on the company’s blog – usually updated regularly – was on November 21.
Over the years HotHouse team has created online projects for some of Australia’s biggest brands including Microsoft, Telstra, nineMSN, Channel Seven, Toyota, Coca-Cola, Sanofi-Aventis, News Limited, Trading Post and many others.
18 Comments
I take it they lost Toyota then?
Five and a half years ago they were in the top 5 digital agencies in Australia according to research firm Forrester.
I often wonder why they never got snapped up by a large WPP or similar.
They never paid some staff either after 2 weeks of working. Rounded them all up and told they won’t be getting paid. Meanwhile they set up a separate company to build another product and are funding it. This should be illegal.
‘Not paid’ that’s incredibly unfair, doesn’t surprise me though
They didn’t pay my 3 weeks and redundant my position.
That really sucks… I was in the same boat just over two years ago, a week before Xmas, one day before (monthly) pay day, the suits came in and said that the company was going into Administration. It took ages, but most of us got most of what we were owed. It took maybe four months, but there is government provision to help employees who are going through this to get their back pay, redundancy payments and any annual leave owed. Hopefully all the staff can get what they’re owed.
Has anyone got any more information, or heard any more rumours?
The gist of it…
All staff were called into an urgent meeting.
They were told Toyota wasn’t a client any more. Being about 90% of the business this was obviously a huge hit, so much so they had to shut up shop.
All systems were shut down by an outside source while this meeting took place. Emails, server access, even company wifi all down. No one had much of a choice but to pack up and walk.
Approx 40-50 people lost there jobs on the spot and they haven’t been paid for the last two weeks either. No pay outs. No nothing.
Some have families, mortgages, or were sponsored to work here. A few pregnant soon to be on maternity leave too.
The owners are setting up a new company called ‘GreenHouse’. A few of the staff members are joining this new team.
Apparently they still had the Toyota account before closing.
The owners might be banking on a legal case with Toyota and former employees. If they closed HH the damages caused in reference to the case goes up much higher. No consideration for their staff and clients. Only winner here will be the owners of Big River.
I think you’ll find it’s highly illegal just skimming the comments here. Staff should get together and do a class action – split the bill of the lawyer. Cheap and you can sue for damages on top of what’s owed.
Nail the pricks.
In September they employed me from the UK. They payed visas for my partner and 2 children. I sold all my stuff and flew to Australia for the dream of a new life. I worked long hours for last 4 months often working late.
I worked through xmas and new year so others could get time off and was owed 5-6 days holiday. On Wednesday I took 3 days off to spend time with my kids. On Thursday afternoon I found out from recruiters on linkedIn asking me if I needed a new job that they were closing.
They never paid me on Thursday and I now have no money and am stranded on other side of planet with no family or friends for support. They still haven’t even bothered to email me and tell me. I move into a unfurnished flat next week and have nothing.
I’m lucky to have job interviews next week but the fact they have 4 people still working at the office on a startup project under a different business name makes me feel really hurt that they can do that to people. I wasn’t the only person with children that wasn’t paid.
It’s stressful that I can’t contract on a 457 as I need a new sponsor so I have to wait weeks to get it transferred and thats after finding a job. I actually even feel embarrassed to speak out about it but if anyone does file any kind of legal case then I would certainly be interested.
I will be talking to immigration and also reporting them for fraud. I would love Toyota to also know these are the kind of people they dealt with. I imagine the 4 people that did stay were payed their owed wages through the new company. The threat of not getting what was owed to them potentially the only reason they still there. I know for fact 2 of those 4 people are busy looking for other jobs. I hope they get out.
Which big river is this? the allegedly uncreative one or the one that allegedly treats suppliers like crap?
Apparently they didn’t lose Toyota… so this whole thing kinda stinks. How poorly run does a company need to be to shutter up when it has one massively stable client?
Hothouse had a deep seated dislike of traditional “advertising” built into it’s collective DNA. The fact that their point of difference had appeared to have largely vanished since traditional agencies had finally got their shit together no doubt grated since it changed them from outsider to old campaigner. They had become an uncool version of that which they despised. Not to mention the fact that the collective rise to competence of more traditional agencies has ironically led to a race to the bottom in terms of price and delivery. Digital delivery with little acknowledgement of creativity is a grim market. I would have thought HH had been agonising over their commoditisation for a while. Having their biggest client change terms or cut back substantially would have just concentrated their minds. On the face of it this seems heartless, but i would suggest it also shows a lack of style, which was arguably their Achilles heel anyway.
@Mike
Might be worth posting here what your skill set is. Others reading may be able to place you.
Sad news all round.
@confused not surprised you can’t work it out, once you’re over 60 it’s hard to keep up, allegedly.
@Mike, and any others effected.
I am shocked at the comments and the way people have been treated.
I am the HR / Talent Manager for a National Technology Consulting firm, If can be off assistance I would welcome the opportunity to chat. Let me know and i will share my details.
Is there proof that they’ve started a new company using some of the same employees/directors?