Schenkein, a 35-year-old independent public relations agency long considered one of the top in Denver, on Tuesday announced it is shutting down at the end of the month as clients slash their marketing budgets.

Schenkein will lay off 11 people, including partner and co-owner Christin Crampton Day. Co-owner Leanna Clark in November announced she would be stepping down from day-to-day involvement with the firm to spend more time on community work.

The decision came after Schenkein lost several longtime clients in late 2007 and wasn't able to replace the revenue as companies froze their marketing budgets once the economic downturn began last year. The firm laid off six employees last June.

"The recession really hit at the worst possible time for us," said Crampton Day. "2008 was a challenging year, and I looked at 2009 and could see that it would continue to be."

Schenkein's client roster includes or at one time included Staples, Denver Preschool Program, University of Colorado Hospital and law firm Greenberg Traurig.

The announcement comes after longtime Denver advertising firm McClain Finlon, in September ended its run and laid off more than 30 people. McClain Finlon had just come off from one of its strongest years in 2006 only to lose its largest client, Qwest, when the telco switched to a Chicago agency.

Schenkein/Sherman was founded by Bob Schenkein with Sharon Sherman in the 1970s, specializing in travel and tourism, alcoholic beverages, health care, recycling and economic development. Schenkein later bought out Sherman. In 2002, he retired and sold the agency to longtime employees Crampton Day and Clark. At the time of the sale, Schenkein Public Relations had posted double-digit growth for five years and had never announced a layoff.

Crampton Day, who has worked at Schenkein for 14 years, called the decision to close the firm "heartbreaking."

"But I know it's the right thing to do," she said.