Branding agency For the People has been referred to ASIC after the ATO forced it into liquidation owing roughly $8 million, with the liquidator flagging possible insolvent trading since 2019 and staff transfers to a similarly named entity. For businesses that hire agencies, it is a blunt reminder that awards are not solvency.
"My preliminary investigations suggest that the company may have been insolvent from at least 1 May 2019 and accordingly the director may be liable for any debts incurred by the company that remain unpaid since that time."
Branding agency For the People and its sole director Chris Billing have been referred to corporate regulator ASIC after the Australian Tax Office forced the business into liquidation owing roughly $8 million. The company's bank account held $2,693.79.
Liquidator Shelley-Maree Brooks was appointed in February by order of the Federal Court in Tasmania following the ATO's winding up application. Her report to ASIC, covered by AdNews, says the agency appeared to have been trading insolvent for a long time. Of the $8 million owed, the ATO's share is about $4.66 million. Twenty-four employees are estimated to be owed a collective $305,377, most of it superannuation.
The detail that should hold everyone's attention is what happened to the staff. The liquidator found some employees were told in late January and early February that their employment had been transferred to a business with a similar name, For The People Agency Australia Pty Ltd, established in Sydney in 2023. Moving assets to a clean shell while leaving debts behind in the old entity is the pattern ASIC calls illegal phoenix activity, and it is exactly what the liquidator's report flags for investigation.
This was not a fly-by-night operation. The agency had offices in Tasmania, Sydney and Perth at its peak, and the ABC reported former staff describing a talented, driven and award-winning team with a great reputation. The work was good. The books were not.
Cash left in the agency's bank account against roughly $8 million in liabilities
Why it matters
If you hire agencies, this story is about you. An agency is a supplier that often holds your money as prepaid media and retainers, your assets as ad accounts, creative files and analytics access, and your momentum as campaigns mid-flight. When one collapses, clients discover overnight that they own less of their own marketing than they thought.
A reputation for good creative work tells you nothing about the balance sheet behind it. This agency was winning awards while, on the liquidator's preliminary view, it may have been insolvent for years. Creative acclaim and financial health are separate audits and most businesses only ever run the first one.
What to do about it
ASIC now decides whether the phoenix question gets a formal answer, and every business that buys agency services should treat the case as a free audit checklist for their next pitch process.