Leffler Agency Inc., a 33-year-old Baltimore advertising and marketing agency that has worked with the Baltimore Orioles and Ravens, has ceased business operations this week, citing financial reasons.
CEO Bob Leffler started the company in 1984 after the Baltimore Colts — where he worked in marketing — left town for Indianapolis.
Leffler's sports background served the agency well as it built up a client base that included Baltimore's two professional sports teams, Towson University athletics and the Naval Academy athletics, among many others.
But Leffler said trying to make a change from 100 percent sports clients three years ago to doing more general advertising and marketing was tougher than anticipated and, at 71 and dealing with health issues, he decided it was time to close shop.
"We had some success, but not enough to keep it going," Leffler said of the shift that began three years ago. "It was almost like being a brand new agency in the deal flow situation and it was hard to just keep up. You are known for one thing and all of a sudden you have to do something else."
The agency is currently undergoing liquidation, including all equipment and buildings, and the last regular pay period day is today. Leffler said the agency's attorneys will assist the process and keep general creditors informed.
Leffler Agency faced a $177,000 federal tax lien last summer and a $44,000 state lien in November, public records show. Leffler said "of course" the liens played into the decision to close, but was just one part of the equation.
Leffler said the staff, which includes nine employees, will be accessible for winding up its affairs but the employees will not be required to come into the office.
Leffler said the agency had as many as 18 employees at one time over the past 33 years and employed a total of 135 people over the more than three decades. The agency, known for its festive holiday parties, estimates it has billed and paid for over $350 million of media over the course of its history.
The agency's Tampa, Fla., office closed last year, Leffler said, with little to no business down there.
Leffler Agency is the second Baltimore ad agency to close this week as Siquis Ltd., a 30-year-old agency, will also close its doors today.
Leffler said some of his greatest accomplishments were helping the Cleveland Browns move to Baltimore and become the Baltimore Ravens in 1995-1996 as well as designing the Preakness Stakes logo for nearly two decades.
But, sports are fickle. The Baltimore Orioles dropped Leffler Agency in 2012 and Leffler said dealing with universities, with work that spanned from the University of Nebraska to the University of Delaware, had its ups and downs.
"We had 27 university programs at one time, but every time an athletic director leaves, no matter how well you have done, you are back to square one and it is kind of unstable," he said. "Sports is really changing a lot and it is a dealing business as much as anything."
Going forward, Leffler said he will continue his career serving on numerous boards and will do some consulting.