AlliedPRA, a global destination management company (DMC), is moving its operations to a partnership model in Europe following the liquidation of parts of the business.
It is not clear how many jobs will be lost exactly, although there will be redundancies across the six European offices, including the UK.
While all European staff will move off the AlliedPRA books, a looser arrangement is expected to see some of the senior teams become marketing partners of the remaining AlliedPRA operation worldwide.
The UK office in Twickenham will close under the AlliedPRA banner, but some senior staff are expected to regroup and work under a new identity with the former ‘mother ship’ on future contracts.
“The current operational model continues to be a challenge in the European market,” said Denise Dornfeld, President of AlliedPRA North America.
The consolidated model that appears to work Stateside has clearly not worked in Europe.
“The scale of business needed to maintain a consolidated DMC in Europe is not achievable in today’s economic climate, and therefore to protect clients and deliver programmes in the fashion they expect and deserve, we are transitioning to a partnership model,” Dornfeld added.
The company has pledged to honour all deposits acquired by AlliedPRA.
Dornfeld underlined the company’s core strength and grass roots were in North America. “By moving to the partnership model abroad, AlliedPRA will have a direct link to opportunities for clients seeking programmes in Europe, while we build strength in North America.”
The company has claimed revenues in North America grew to record levels in 2014, as it opened new locations in Hawaii and Washington, DC, and acquired the independent franchise office in Palm Springs.
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