Leo Fires Minority Army Shop

Leo Burnett has ousted Images USA, the Atlanta-based shop that handles the African American portion of the U.S. Army’s $95 million account, ac cording to sources.

Chicago-based Burnett and Images disagreed about the fees Burnett pays its subcontractors on the Army account, among other issues, sources said.

Images had been working without a signed contract since Burnett won the Army business in July 2000.

As the primary contractor, Burnett administers the account and has the power to hire and fire subcontractors.

Ray De Thorne, an executive vice president at Burnett who handles the Army account, would only say, “The two agencies have decided to go their separate ways, and it is an amicable parting.”

Bob McNeil, president and CEO of Images, said, “We both agreed to move on.”