2 $30 Mil. Accounts In Flux

A merger between two home improvement chains, Hechinger and Builders Square, has prompted the new owner to re-evaluate both companies’ agency relationships.
Each company’s ad account is worth $30 million. Fogarty Klein & Partners in Houston handles Builders Square, while Washington, D.C.-based Adworks is the agency for Hechinger, which also operates Home Quarters Warehouse.
Officials at the client declined comment. Executives at both agencies said, however, that the company has informed them that they must re-pitch their accounts.
Leonard Green & Partners, a Los Angeles investment firm, acquired Hechinger and Builders Square in September and installed Anthony Petrillo as interim chief executive.
Corporate operations for both chains have been consolidated at Hechinger’s Largo, Md., offices under the provisional name Hechinger/Builders Square/HQ. Builders Square was previously based in San Antonio. The two retailers will keep their original names for the time being.
It is not clear whether the client is looking to consolidate advertising for both chains at one shop, though sources said that is possible.
Fogarty principal Rich Klein said his agency will present to H/BS/HQ next month or early next year. “We’re hopeful that we can retain the business,” he said.
Adworks has been asked to re-pitch the Hechinger account early next year [Adweek, Nov. 17]. The agency said it has not decided if it will defend the business.
It is not known if the client plans to contact outside agencies before giving its roster shops a chance to retain their business.