The accountancy firm of Menzies has resigned as auditors of the much troubled Round 2 International UK whose subsidiaries are currently in administration after an under-capitalised acquisition spree (see Round 2 failure poses funding mystery).
Round 2 was the acquisition vehicle used by US media buyer Garfield Ricketts to acquire Robson Brown, Austin West Communications and Attinger Jack in 2009. All three companies went into administration last December although Round 2 itself has so far not been subject to the same fate.
Menzies director John Foundling played a key role in approaching potential acquisitions for Round 2 and in negotiating the deal terms. Foundling is a banker rather than an accountant, but nevertheless it may no longer be considered appropriate for Foundling’s firm to act as auditors.