Simon Worldwide Will Cut 215 Jobs, Might Shut Down

Simon Worldwide Inc., a marketing company that lost its major clients after an employee was accused of rigging a McDonald’s Corp. promotion, said it will eliminate 215 jobs and might go out of business.

Simon’s third-quarter loss widened to $67.2 million, or $4.05 a share, after the payment of preferred dividends, from $1.4 million, or 10 cents, a year ago, the company said.

Simon said the elimination of the 215 jobs in the current quarter is in addition to 177 jobs cut in the third quarter.

Simon’s two major clients, McDonald’s and Philip Morris Cos., canceled their contracts with the company after the Federal Bureau of Investigation said in August that an employee of Los Angeles-based Simon subsidiary Simon Marketing Inc. stole winning McDonald’s game pieces worth more than $20 million in prizes.

Last week, Simon sued Philip Morris, claiming that the tobacco company broke a $7.5-million contract.

Wakefield, Mass.-based Simon said that because of the loss of clients, there is “substantial doubt about its ability to continue as a going concern.” Simon shares fell 10 cents to close at 18 cents Tuesday on Nasdaq.