Fogarty Klein & Partners in Houston will have to defend its $30 million Builders Square account as a merger with the Hechinger home improvement chain has a new owner evaluating advertising plans for both retailers.
It is not yet clear if the client will consolidate advertising for both retail operations at a single agency in order to streamline costs, though sources said such a move is possible. The Hechinger advertising account, also worth an estimated $30 million, is handled by Adworks of Washington, D.C.
Fogarty Klein & Partners principal Rich Klein said his agency will present to the new management group next month or early next year.
"We continue to work hard for Builders Square on a day-to-day basis, and we're hopeful that we can retain the business," Klein said.
Adworks last week laid off eight employees after being told it would have to re-pitch Hechinger--which also operates stores under the Home Quarters Warehouse banner--early next year [Adweek, Nov. 17]. The agency said it has not decided if it will defend the account.
Client officials declined comment, but sources said both agencies were told that all vendor relationships are being evaluated. It is not known if the client plans to contact outside agencies before giving its two roster shops the chance to defend their business.
Leonard Green & Partners, a Los Angeles-based investment firm, acquired both Hechinger and Builders Square in September and consolidated the management of the two retail companies under interim chief executive Anthony Petrillo.
Corporate operations for both chains have been combined at Hechinger's offices in Largo, Md.
Builders Square, previously of San Antonio, operates 164 retail units, while Hechinger and Home Quarters have a combined 115 stores.