Bad News Leaves MICE Group Future in Question

In the last month, international marketing services firm MICE Group has struggled for survival. Its shares were suspended on the London Stock Exchange, a top executive stepped down, one of its divisions went bankrupt and another possibly was sold.

MICE Group is the parent company of MICE Intl., MICE U.K. and MICE North America.

The rumor concerning the selloff of MICE Intl. to private investors started when a press release dated June 21 from that division's CEO, Jim Curley, was posted on the Interactive Investor's online discussion board.

In the release, Curley said: "We are committed to our staff, clients and suppliers and thank them for their support in moving forward. MICE Intl. are (sic) a leading events and marketing communications company with a proven track record of over 17 years. We are very excited about our future and the array of opportunities that continue to present themselves from our clients."

Jim Curley (son of MICE Group's now-retired founder, Mike Curley) did not respond to TSW's request for comment.

Herb Hite, president of West Coast operations and acting CEO for MICE North America, said the fate of the U.S. division was a "good question," but added, "The best way of saying it is that they (MICE Group) are going through restructuring, and MICE North America could be sold through private equity, like MICE Intl., or sold off altogether."

On the other hand, MICE North America could survive unscathed. "(MICE Group) is in discussions right now on re-funding," Hite said.

He has temporarily replaced Paul Mullen, who resigned as head of MICE North America.

Since April, when it traded at a high of 25p (50 cents), MICE Group's stock has plunged to its current price of 6p (12 cents).

In a statement released June 5, the company warned it needed funding: "The Board is concerned that the company would have insufficient funds to continue trading, unless such additional funding from interested parties can be secured in the short-term."

The next day the London Stock Exchange suspended MICE Group's shares and administrators from Grant Thornton were brought in to oversee the company until it raises sufficient funding to get the stock exchange's go-ahead to start trading its stock again.

MICE Group, with 64 companies and 1,700 staff members in 40 locations worldwide, focuses on creative and brand communications; conferences and exhibitions; sponsorship and event marketing; training and sales promotion; workplace interiors and retail design; leisure environments; and museums.

According to Hite, MICE U.K., which handles mainly department store fixtures, had all 14 of its entities "pushed into bankruptcy" — one of the factors that led to the company's financial crisis. MICE Intl., he added, is a tradeshow-related company that works in tandem with MICE North America on European projects.

MICE North America has 11 offices in the United States and approximately 400 employees. Hite said none of the offices had been closed. For now, according to Hite, even with the upheaval at its parent company, MICE North America is doing business as usual.

"For us here, we're a strong, healthy, profitable company, and we're looking to continue to support our clients," he added.