In a significant shake-up for UK management agency YMU, the company is set to undergo a restructuring process that will result in staff redundancies and changes in ownership. Following an independent review conducted by AlixPartners, YMU has decided to make up to 9% of its staff redundant. Additionally, Permira Credit, a key lender to YMU, will become the majority shareholder as part of the restructure.
Employees at YMU have recently been informed of the company’s plans internally. It is expected that around 8-9% of the workforce, approximately 32 employees out of 350, will be made redundant. The redundancy process is scheduled to begin in September. This announcement comes as a blow to the affected employees and signifies a challenging period for the company in the wake of the pandemic.
YMU’s financial difficulties have been amplified by the global economic downturn caused by the pandemic. The management agency has faced significant challenges due to the reduction in profits and the need to cut costs. According to filings, YMU had debts of approximately £70M ($87.7M), primarily owed to Permira and Lloyds Banking Group. The restructuring process is expected to alleviate some of the financial strain by reducing the company’s net debt. Permira’s investment is anticipated to be substantial and will aid YMU’s expansion plans in the United States.
Despite the difficulties faced by YMU, the agency remains committed to its current and future clients. The restructure will serve as an opportunity for the company to refocus its efforts on providing high-quality management services to its clients. With the financial injection from Permira, YMU aims to expand significantly in the United States, reinforcing its presence in the global market.
The recent developments at YMU have also been accompanied by changes in the agency’s leadership. Holly Bott, Global Managing Director, who represented notable clients such as Claudia Winkleman, resigned a few weeks ago. However, she will remain with the company until the end of the year. The departure of Bott raises questions about the agency’s future and adds to the ongoing speculation regarding changes within YMU. These rumors have been circulating during the Edinburgh TV Festival.
Permira Credit, a specialist credit investor and a major lender to YMU, has played a significant role in the restructuring of the agency. Through a substantial investment, Permira is set to become the majority owner of YMU. This involvement will not only alleviate the company’s financial burdens but also contribute to its growth plans. YMU’s clients, including prominent figures such as Ant and Dec, Graham Norton, Emily Ratajkowski, and Paris Hilton, will benefit from the stability and support provided by Permira Credit.
Previously owned by private equity firm Trilantic Europe, YMU underwent a change in ownership in 2018. Trilantic Europe acquired a majority stake in the agency, previously known as James Grant Group, and rebranded it as YM&U. Since then, YMU has expanded its operations in the UK and the US and encompasses eight divisions, representing clients in various sectors such as TV, music, and the influencer realm.
The management agency YMU is undergoing a significant transformation with the aim of achieving a more stable financial position and refocusing its efforts on its clients. The restructuring process, which includes staff redundancies and changes in ownership, comes as a result of an independent review conducted by AlixPartners. With Permira Credit as its majority shareholder, YMU intends to strengthen its position in the industry and expand its operations in the United States. Although the road ahead may be challenging, YMU remains committed to providing exceptional management services to its roster of high-profile clients.