Scandal-hit PR firm Bell Pottinger seeks rescue

British public relations firm Bell Pottinger, accused of stirring racial tension in South Africa, faces administration to save it from collapse, a company source said today.
"We may well be in administration by Monday," the source told AFP, in reference to the process whereby a troubled firm calls upon independent expert financial help in a bid to remain operational.
In a chaotic week, major clients including banking giant HSBC and telecommunications group TalkTalk have axed ties with Bell Pottinger after it was accused of orchestrating a racially-charged campaign on behalf of the controversial Gupta family in South Africa.
Other fleeing customers include construction company Carillion, financial services firm Investec and luxury goods maker Richemont, according to media reports.

Britain's Public Relations and Communications Association (PRCA) trade body expelled Bell Pottinger on Tuesday over a campaign deemed "likely to inflame racial discord".
"White monopoly capital" was one of the slogans Bell Pottinger used on behalf of Oakbay Capital, an investment holding company run by the Indian Gupta family.

The Twitter hashtag #whitemonopolycapital is used by supporters of South Africa's ruling Zuma family, which has controversial ties to the Guptas, to discredit opponents.
The British PR giant deliberately created a narrative of "economic apartheid" to defend the Guptas, according to an independent report, which was conducted by law firm Herbert Smith Freehills and published on Monday.

By today, Bell Pottinger chairman Mark Smith told a staff meeting at the PR firm's headquarters in Holborn, central London, that it was likely to go into administration.
Accountancy firm BDO has been hired to look at options including a possible sale.