Last week, Smarta posted on their blog, “A Bad Lesson in PR from a PR Company,” about a PR agency in the UK that is in dire need of PR for itself.
No, not because they are enduring business woes or expanding their brand.
But rather, due to a very nasty e-mail, the owner of KBC PR, Karen Berman, blasted to her networks. (see below)

———- Forwarded message ———-
From: Katie Jacobs <katie@kbcpr.com>
Date: Fri, Apr 17, 2009 at 10:33 AM
Subject: Lianne Miller’s company Young and Pure made insolvent at the High Court

-PRESS RELEASE FOR IMMEDIATE PUBLICATION-

Young and Pure made insolvent at the High Court

Young and Pure Limited, the Company founded and run by the self-acclaimed “entrepreneur” Lianne Miller to develop the first natural skincare range for teenagers, was compulsorily liquidated by the Court on 1st April 2009 following the presentation of a winding-up petition earlier in the year by one of its many creditors. The Court will now appoint the Official Receiver to investigate. The Company’s liquidation is likely to leave a trail of hundreds and thousands of pounds of unpaid bills to those small companies that believed in and supported Mrs Miller from the beginning.

It is understood that Young and Pure Limited owes significant sums to numerous creditors. In fact, over fifteen creditors have come forward in the past six months and revealed that Mrs Miller has withheld, and in most cases refused, payment despite having contractual obligations to do so.

The largest creditor is believed to be the Karen Berman Consultancy, who played a pivotal role in the growth and development of the Young and Pure brand in terms of press and public relations. The Karen Berman Consultancy penned the title of ‘Green Teen Guru’, a phrase used often by Mrs Miller and one that is well known in her industry. The Karen Berman Consultancy obtained Judgment against Young and Pure Limited for just over £11,000. It is understood that it is owed a further £7,000 in notice payments. It now looks unlikely that money will be recovered.

Mrs Miller, who appeared in BBC 3’s reality TV programme The Last Millionaire earlier this year, is still advertising and promoting her services as an after-dinner entrepreneurial speaker and business mentor (both locally in Suffolk where she resides and nationally). This despite the fact that her business is insolvent and has failed to pay its creditors for some time.

Karen Berman Consultancy has reluctantly issued this press release, as it is a matter of great public interest and given the high-profile coverage that Mrs Miller and her company Young and Pure Limited have received.

Contact the Karen Berman Consultancy for further information:
Karen Berman – 020 8959 2374 / karen@kbcpr.com

-ENDS-

What I find the most alarming is Berman’s need to ‘call out’ her former client by breaching confidentiality and trust, while gouging further an existing wound.
Public relations is supposed to be about managing situations, thinking outside of the box and acting in a proactive manner.
Not only was Berman reactive, but spiteful and suffering from severe self-indulgent tunnel vision.

It is quite doubtful that 

 reluctantly issued this press release, as it is a matter of great public interest

 for this blast, as it is obvious the only great public interest is that of KBC PR (Young & Pure Limited’s clients will get their light of day from the High Court themselves.)While, no one wants to break their bank accounts further, especially with a worldwide recession floating about, crossing the line of business ethics is an entirely different matter.

Little Pink Book’s Rule of PR #2:
What happens between you & your client,
should stay between you & your client
(and any court of law that is involved of course.)

Sasha Muradali runs the ‘Little Pink Book.’ She holds a B.S. in Public Relations and an M.A. in International Administration.

Copyright © 2009 SashaHalima PRAll rights reserved.

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