Laundry Service founder Jason Stein is leaving the agency, which was bought by Wasserman in 2015 for a total value of between $50 and $60 million, according to people with knowledge of the matter.
Various people with knowledge of the matter have told Campaign that Stein's departure marks the end of his earn-out with Wasserman. However, someone familiar with the acquisition agreement told Campaign that the earn-out deal was finished in 2016 and that Stein's exit has nothing to do with the contract.
Wasserman declined to comment on details around the sale or Stein's earn-out.
Stein’s wife, Alyson Warshaw, is also stepping down from her post as chief creative officer of Laundry Service. The duo will start another company together, according to people with knowledge of the matter.
According to a Laundry Service spokesperson, Stein’s departure is "amicable" and the transition has been in the works for "a while."
Stein and Warshaw have not been in their Brooklyn office much since March, people close to the matter told Campaign.
The same people said that Warshaw and Stein are still on the company’s payroll at the moment. Representatives from Wasserman said in response: "Strict HR policies prohibit us from answering any queries regarding departure terms. They are bound to confidentiality."
Warshaw and Stein were not immediately available for comment.
In addition to Stein and Warshaw’s departures, which Adweek first reported on earlier today, Laundry Service went through a round of layoffs, which a spokesperson said are "part of the usual agency ebb and flow and are not related to a specific client or any other occurrence."
Going forward, Laundry Service and its media company Cycle will be spearheaded by COO Jordan Fox, Managing Director Amy Amy Hellickson and CMO Mike Mikho.
"Jordan, Amy and Mike are each vibrant leaders with very complementary strengths and experience," said Casey Wasserman, chairman and CEO of Wasserman, in a statement. "I have no doubt that, under their guidance and with my unconditional support, the companies will continue to grow and deliver great work."
This story has been updated with further information around Stein's earn-out agreement from other sources.
