Bell Pottinger on the market as clients leave in droves

After being suspended from the Public Relations and Communications Association (PRCA) on Tuesday as a result of an investigation into its questionable work on an advertising campaign that stoked racial tensions throughout South Africa for Oakbay Capital, Bell Pottinger began to lose major clients on Wednesday.

Chime Communications, a joint-venture between Providence Equity Partners and advertising juggernaut WPP, returned its 27% stake in Bell Pottinger without compensation in August before the handing down of the verdict and now HSBC, Carillion, Richemont, and Investec have said they will no longer do business with the firm.

"We have used Bell Pottinger for specific projects in the past but will not be doing so in the future," said a spokesperson for HSBC when speaking to The Independent.

Lord Timothy Bell, co-founder and chairman of the group until his resignation in November 2016, said on Tuesday that the firm was "probably nearing the end," and less than 24 hours later a spokesman for the disgraced PR business announced that the group would be putting itself up for sale with the help of accountants at BDO, who will attempt to find a buyer for the company that employs 250 people across the UK, Asia, and the Middle East.

"I can confirm that we have appointed BDO to look at the options for the business moving forward," said the spokesman.

In a busy day of news for the firm, after chief executive James Henderson quit in light of the PRCA sanctions on Monday, the man who many had tapped to take his spot, John Sunnucks, the head of Bell Pottinger's financial PR division tendered his immediately effective resignation on Tuesday evening.

The company was expected to appoint a replacement for Henderson in the next few days in an effort to reassure clients that it was safe to stay with the company.