Shares in the advertising company Cordiant Communications fell by nearly two-thirds on Monday, after the company revealed that it had lost a major contract.

Allied Domecq, the global spirits group, became the latest client to defect from Cordiant.

This company is in a real mess Susannah Bell Teather & Greenwood analyst

Cordiant's shares, which have shed more than 90% of their value in the past year, fell 64% to 9.75 pence.

The company also announced that it might miss a deadline to report its results this week.

Defections by clients including Hyundai Motor America, Wendy's and Woolworth's have further damaged a business already dented by a severe downturn in the advertising industry.

Meltdown

The departure of Allied Domecq, one of Cordiant's largest clients, will knock 3.4% off the company's revenues, amounting to �18m ($28.6m) in annual sales.

"This company is in a real mess," said Teather & Greenwood analyst Susannah Bell, who has a "sell" rating on the stock.

In February Cordiant said it would sell parts of its business to ease its debt burden.

Following the loss of Allied Domecq, the company said it was looking into "alternative strategic options".

It is also negotiating with its lenders to amend its bank facilities.

If the company fails to release its results on time, as it is suggesting, its shares may be suspended.

"My presumption is they will not announce in time. I'd imagine the stock will be suspended, and the company will go into administration," added Ms Bell.

In happier times, Cordiant was responsible for slogans such as "M&Ms melt in your mouth, not in your hands".