Sitrick and Company

Sitrick and Company is a Los Angeles-based public relations firm started by Mike Sitrick in 1989. It would go on to establish offices in New York, Miami, San Francisco, and Silicon Valley.[1] Sitrick and Company works together with Brinko Associates as the Sitrick Brincko Group to offer management consulting services; the group counts among its employees retired United States Army lieutenant general H. Steven Blum.[2]

Contents

Purchase by Resources Connection

In October 2009, Sitrick and Company and restructuring firm Brincko Associates were purchased by Deloitte spin-off Resources Connection Inc. in a combined cash and stock deal worth $43.3 million. At the time, Sitrick and Company had 45 staff members (largely ex-journalists from the Los Angeles Times, The Wall Street Journal, and other media organizations), versus Resources' 2,700.[3] The two purchased firms had a combined revenue of $24.4 million in 2008, according to Resources Connection. The purchase combined the two into a new subsidiary, the Sitrick Brincko Group.[4] Mike Sitrick continued as head of the subsidiary after its purchase.[5] In 2010, two ex-employees filed suit in federal court regarding Sitrick's buyout of the Employee Share Ownership Plan's holdings in the company in 2008, shortly prior to the Resources Connection deal; the suit alleged that Sitrick paid an unreasonably low price for the ESOP's stake, causing losses to the employees in question.[6]

Clientele

Sitrick and Company is known for its handling of famous or controversial clients.[3] Its work earned Sitrick the title of "the king of crisis PR".[7] David Duchovny hired the firm to represent him to the media in his dispute with 20th Century Fox regarding breach of contract relating to his work on the The X-Files television show; Sitrick and Company arranged for a feature in Forbes regarding Fox's vertical monopoly, which put pressure on Fox to settle with Duchovny. The Roman Catholic Archdiocese of Los Angeles hired the firm in 2002 regarding the diocese's sexual abuse scandal.[8] Hewlett-Packard and its departing chairwoman Patricia C. Dunn hired the firm to handle media relations regarding HP's 2006 leak-investigation crisis.[9] Paris Hilton made use of their services after she was released from a brief time in jail.[3] Steven Page of music group Barenaked Ladies hired the firm in 2008 after his own drug arrest.[10] Medicis Pharmaceutical CEO Jonah Shacknai hired the firm following the 2011 death of Rebecca Zahau.[11] Sitrick advised "the late Roy Disney and Stanley Gold when he orchestrated their campaign to remove Michael Eisner as chairman of Walt Disney in 2003. The campaign led to 43 per cent of Disney shareholders withholding their support from him. Mr Eisner later stepped down voluntarily." [12]

References

  1. ^ About, Sitrick and Company, http://sitrick.com/about, retrieved 2011-09-10 
  2. ^ "Retired General Joins Sitrick Brincko", The New York Times, 2010-07-12, http://dealbook.nytimes.com/2010/07/12/retired-general-joins-sitrick-brincko/, retrieved 2011-09-09 
  3. ^ a b c "Breaking News: Resources Buys P.R. Firm Sitrick and Company", Wall Street Journal, 2009-10-29, http://blogs.wsj.com/deals/2009/10/29/breaking-news-resources-buys-pr-firm-sitrick-and-company/, retrieved 2011-09-09 
  4. ^ Wahba, Phil; Daga, Anshuman (2009-10-30), "Consulting firm Resources Connection to buy Sitrick, Brincko", Reuters, http://www.reuters.com/article/2009/10/30/sitrick-idUSN2938366320091030, retrieved 2011-09-09 
  5. ^ "Resources buys P.R. firm Sitrick And Company", Los Angeles Business Journal, 2009-10-30, http://www.bizjournals.com/losangeles/stories/2009/10/26/daily33.html, retrieved 2011-09-09 
  6. ^ Hiltzik, Michael (2010-06-02), "Michael Sitrick could use some crisis-management advice", Los Angeles Times, http://articles.latimes.com/2010/jun/02/business/la-fi-0602-hiltzik2-20100602, retrieved 2011-09-09 
  7. ^ Christensen, Kim (2006-10-21), "PR Guru's Public Spat Over a Debt", Los Angeles Times, http://articles.latimes.com/2006/oct/21/business/fi-sitrick21, retrieved 2011-09-09 
  8. ^ Hall, Carla (2002-05-30), "L.A. Archdiocese Enlists Services of Top PR Firm", Los Angeles Times, http://articles.latimes.com/2002/may/30/local/me-flack30, retrieved 2011-09-09 
  9. ^ Altus, Celest (2006-09-12), "HP Taps Sitrick & Company as crisis grows", PRWeek, http://www.prweekus.com/pages/login.aspx?returl=/hp-taps-sitrick-company-as-crisis-grows/article/55601/&pagetypeid=28&articleid=55601&accesslevel=2&expireddays=0&accessAndPrice=0, retrieved 2011-09-10 
  10. ^ Köhler, Nicholas; Gulli, Cathy (2008-07-23). "Barenaked Mess". MacLean's. http://www.macleans.ca/culture/media/article.jsp?content=20080723_87241_87241. Retrieved 2008-08-16. 
  11. ^ Edwards, Jim (2011-09-08), "CEO Shacknai Wields Small Army Against Speculation on Death of His Girlfriend", CBS BNET, http://www.bnet.com/blog/drug-business/ceo-shacknai-wields-small-army-against-speculation-on-death-of-his-girlfriend/9609, retrieved 2011-09-09 
  12. ^ Garrahan, Matthew (2010-03-16), "The spin doctor of restructuring, http://www.ft.com/intl/cms/s/0/207df596-314b-11df-9741-00144feabdc0.html#axzz1Z5Eng3ol, retrieved 2011-09-26 

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