Cambridge Analytica is shutting down following Facebook data scandal

Not all publicity is good publicity...

Cambridge Analytica and its parent company SCL have filed for bankruptcy following the accusations over its acquisition and use of Facebook user data for political campaigning.

The companies blame the "siege of media coverage" driving away customers for the move. However, the same people behind Cambridge Analytica and SCL have already opened up what appears to be a successor company.

Cambridge Analytica claimed that while it had been "vilified" for its use of social media data, it asserted that it had "not only [been] legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas".

But as a result of being portrayed as a shadowy, manipulative firm in the media - aided by statements made by CEO Alexander Nix, suspended last month - the company said that the Facebook affair had "driven away virtually all" of the company's customers and suppliers.

"Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company's efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas," the firm said.

Cambridge Analytica added that the Queen's Counsel, Julian Malins, tasked with probing the London-based company over its dodgy data use, found that the allegations were not "borne out by the facts".

The statement continued: "Despite Cambridge Analytica's unwavering confidence that its employees have acted ethically and lawfully, [a view] now fully supported by Mr Malins' report, the siege of media coverage has driven away virtually all of the company's customers and suppliers.

"As a result, it has been determined that it is no longer viable to continue operating the business, which left Cambridge Analytica with no realistic alternative to placing the company into administration."

According to Gizmodo, Cambridge Analytics employees in the US only found out about the bankruptcy filing when they were ordered to hand over their company keycards.

Damian Collins, chairman of Parliament's Digital, Culture, Media and Sport Committee, which is currently probing Cambridge Analytica, said that the closure of the company wouldn't derail his Committee's investigation into it and its practices.

"They are party to very serious investigations and those investigations cannot be impeded by the closure of these companies," he told Reuters.

"I think it's absolutely vital that the closure of these companies is not used as an excuse to try and limit or restrict the ability of the authorities to investigate what they were doing."