A marketing firm in Raleigh, N.C., has filed for chapter 11 protection — a circumstance its attorney blames on rising wages, the Triangle Business Journal reported. Direct Marketing Group, which also goes by its initials, DMG, filed for bankruptcy reorganization on July 7. The company bills itself as developing digital marketing strategies for its clients. It was founded by Ryan Fuller, formerly a retail operations manager for Hendrick Automotive Group. The company's attorney, Danny Bradford, said a big part of the firm’s cash flow problems are tied to rising labor costs. Higher costs caused DMG to incur expensive short-term loans — and payments have impaired cash flow. As a result, the firm has to streamline its operations and reduce personnel, he said. “The reality is that higher wages are here to stay,” Bradford said, adding that DMG hopes to use software in order to increase productivity for the employees it’s retaining. DMG is not alone. Philip Sasser, a bankruptcy attorney in Cary who is not connected to DMG's case, said wage and labor issues have been a major driver of why business owners are reaching out to his firm about possible bankruptcies.
