Palisades Media Group, an ad agency that represents a roster of clients including Netflix, suddenly informed staff Friday the company would be closed permanently at day’s end, individuals with knowledge of the situation told TheWrap.
Employees received a company-wide email that it was shuttering at close of business, a fraught development for Netflix, which is just beginning the second phase of its Emmy campaigns. At Palisades, the news came as a shock as the atmosphere had been business-as-usual, though the company has been falling behind in payments to vendors, according to knowledgable individuals.
“They were closed because they’re embezzling and the FBI raided them,” a rival agency employee told TheWrap.
Palisades Media and Netflix did not immediately respond to TheWrap’s request for comment.
The surprising move comes just days after Emmy nominations were announced and as all the networks and streamers are placing their advertising campaigns ahead of September’s ceremony. Netflix ranked second among all networks and platforms with 105 nominations.
In addition to Netflix, Palisades Media boasts an impressive roster of clients, including Orion Pictures, Bleecker Street, the Hollywood Bowl, Zelle and Vizio.