TBWA PARTS WITH KMART

Agency Said the Rift Was 'Financial'

By Published on .

Most Popular
NEW YORK (AdAge.com) -- Omnicom Group's TBWA/Chiat/Day today said it is ending its relationship with retail giant Kmart. The move follows Kmart's decision this week to call for nonroster agencies to pitch new ideas on the brand's positioning.

In a short statement, the agency said: "The issue that has come between us is not an advertising issue, but a financial one."

Past dispute
The agency refused to expand on the

Related Stories:
KMART OPENS REVIEW FOR NEW AD AGENCY
TBWA/Chiat/Day Is Incumbent on Account
TBWA, DON COLEMAN OWED $8.7 MILLION BY KMART
Retailer Continues Latest Branding Efforts
statement, but the two parties earlier had wrangled over $5.4 million in media payments. While the dispute was largely settled last September, TBWA continued a further claim for $1.7 million for other expenses. Kmart and multicultural agency GlobalHue also parted ways last year over payment issues.

Ad spending slashed
The news is unlikely to inspire potential new agency partners for the retailer, which said it had slashed administration costs, including advertising spending, when it reported first-quarter 2003 results.

TBWA began work for Kmart in 2000 and had remained with the retailer as it went through three separate CEOs, numerous marketing chiefs, Chapter 11 proceedings and the legal problems of Kmart spokeswoman Martha Stewart.

Kmart did not return numerous calls for comment.