• Innovation Ads – Innovating No More

    July 2nd, 2010

    It is being reported that Innovation Ads has closed and ceased operations in the online lead generation space. Emails from now former employees went out to their former clients, saying “I’m not sure if word has gotten to you yet, but yesterday, Innovation Ads closed, and terminated all of it’s employees.” The emails unfortunately also delivered some bad news, namely that companies are now saddled with potential losses because of presumably now unpayable invoices.

    Innovation Ads has long and colorful history in the space. I was unaware that Capital Source Finance of Chicago was the majority owner. Founded in 2002, the company was acquired by Seaport Capital in 2006. The press releases stated, “This was a strategic move carried out by Seaport Capital in order to compliment its earlier acquisition of Direct Response Media, Inc. (DRMI), a full-service agency specializing in direct response television. Seaport Capital has created Think Media, a holding company that will preserve the autonomy of Innovation Ads and DRMI, while creating the opportunity for collaborative direct marketing endeavors between the two entities. This heavy-weight amalgamation of unique talent promises to be the premier direct marketing solution for advertisers.” Whatever it was, kudos should go the investment bank. The majority owner of Innovation Ads now, according to those closer to the company, is not Seaport but Capital Source Finance of Chicago.

    Prior to the acquisition, Innovation Ads did not have a reputation for high quality… this according to feedback from the schools. More recently, though, it seems as though the company had turned the quality corner and for some schools was starting to be seen as a preferred vendor. Those we talked to (on the buy and sell side) liked dealing with them.

    A big question looms around the future of UMUC (University of Marlyand University College) from whom Innovation ads was the Agency of Record. I suspect there are some pretty excited other firms who would like to take over the relationship with such a marquee brand.

    Best of luck to the team there. We wish them well.

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    • FrankVendola
      Dr. Sanjaya Addanki,

      Ex-C.E.O. Innovation Ads

      233 Plaza Real, Boca Raton,

      Florida, USA

      415-420-0176



      July 1, 2010









      Personal and Confidential



      Via Email: bcarroll@capsource.com jim@seaportcapital.com









      To: All Employees of Innovation Ads,



      RE: Innovation Ads





      My Dear Colleagues,



      My best understanding of the situation with Innovation Ads, after various conversations and emails with Seaport Capital of New York, who are still majority owners of the company, and Capital Source Finance of Chicago, who are the Bank that are taking all our monies, is as follows :



      1. There are no buyers or investors interested in Innovation Ads

      2. Capital Source continues to sweep all company accounts to recover its loan and is no longer willing to fund company operations

      3. All staff have been working, in good faith, for the past two weeks, effective June 20st 2010.

      4. Capital Source is not willing to release funds in order to pay them for work done since June 20st 2010.

      5. Capital Source intends to benefit from this work by collecting and sweeping the receivables from this work.



      Given there is no intent on the part of our Bank to return monies it has swept from our accounts to fund payroll, and given no one can be asked to work for free, at this point we must all conclude that we no longer employed with Innovation Ads. That applies to everyone in the company, myself included.



      Therefore I ask us all to quietly collect your personal belongings and leave these premises as soon as we can.



      The Bank appears to have no interest in funding rent either, therefore these premises revert to the landlord as of today. We will all leave quietly and leave all company property behind as by contract, it belongs to the landlord.









      Sincerely,













      By: __________________________________

      Dr. Sanjaya Addanki

      Ex-CEO Innovation Ads
    • Francisco_pool_shark
      francisco was here ..

      what this company did is uncalled for and it should not be tolerated. i put a complaint in so that i can get my payroll check through the department of labor .i suggest you do the same bud. my#561 809-0080

      Francisco Pizarro
    • FrankVendola
      Sisco,
      The Department of Labor told me that we have to wait 15 days from the 1st to file a complaint. I also wrote an email to Gov Crist.

      Frank - yeshualives65@yahoo.com
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