Ad duties for the recently combined Hechinger/Home Quarters/Builders Square retail operation have been consolidated at Fogarty Klein & Partners, Houston, without a formal review of outside agencies.
Sources said spending for the home improvement chains would be cut in half under a new pact, probably to $30 million.
Builders Square incumbent Fogarty Klein and Hechinger/Home Quarters agency Adworks of Washington, D.C., were asked to repitch their respective accounts (then worth roughly $30 million each) in November after the chains were acquired by Los Angeles investment firm Leonard Green & Partners.
Adworks declined the offer to defend, saying the once-heavy broadcast account was being refocused on print and direct marketing chores. The agency later laid off eight employees in a restructuring. Fogarty Klein had several subsequent meetings with the client at its Largo, Md., offices before negotiating a new contract.
Though combined spending falls under the deal, the acquisition is a coup for Fogarty Klein, which has ranked Builders Square as one of its largest accounts since gaining it in November 1993. Fogarty Klein lists overall billings at $170 million.
Client representatives did not return calls, and it was not clear last week if they visited with outside agencies before selecting Fogarty Klein. Agency principal Rich Klein said he was not aware of any other shop making a formal presentation for the business.
In a statement, Klein said, "We are very enthusiastic about the future of the new company and look forward to being a part of its growth and development."
The combined operation has revenues of more than $4.5 billion. Its 250 stores are down from 279 prior to the acquisition.
Initial agency assignments are expected to be weighted toward direct marketing and customer retention efforts and later expanded to include TV and print work.