In a softer economy, a shutdown of a medium-size ad agency or a similar small business might find displaced employees scurrying.
But in the currently robust job market, the 50 staffers of Lowe Lintas & Partners Chicago, an agency that shut down officially Wednesday, didn’t have any real problems in relocating.
“That’s if they wanted to work,” says an insider, who reports that some staffers are taking time in evaluating options.
Once strongly committed to the Chicago market (the office here opened in late 1997), Lowe Lintas was the victim of having only one major client–Ameritech Corp. When Ameritech was gobbled up by SBC Communications Inc., the handwriting was on the wall because the new parent had its own agency–GSD&M in Austin, Texas.
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Lowe Lintas once had as many as 66 staffers, but there were only 50 on board when agency employees were told March 10 about the shutdown.
Lowe Lintas gets a B+ for commitment and an A- in hiring top talent. However, it wasn’t easy getting major new business with the competitiveness among agencies here. How many times can you finish as a bridesmaid in new business pitches?
Among those executives still mulling opportunities are Brad Brinegar, president, and Donna Kirchman, executive VP-director of communications planning. Brinegar, who left a top job at Leo Burnett Co. to head up Lowe Lintas Chicago, is looking both within the ad biz and “beyond.”
One of the problems in exiting any market is what to do about the office space that remains–22,000 square feet at 142 E. Ontario St. Lowe Lintas is seeking to sublet, but it might prove a bit more difficult than staffers finding new jobs.
– Separately, J. Walter Thompson Co. was assigned global advertising for Manhattan-based KPMG International, besting BBDO Worldwide and Bates Worldwide, all of New York, for what the client said would be a $90 million account in 2001. That figure appears a bit inflated over the recent level of ad spending, which included $26 million in the U.S. in 1999, according to Competitive Media Reporting. As business professional services firms, including KPMG, compete more aggressively, budgets are certain to increase. A spokesman said a third of the projected 2001 budget would be in the U.S. JWT succeeds Lowe Lintas & Partners in New York, which in mid-1998 introduced a branding campaign, keyed to the “It’s time for clarity” umbrella tag line. JWT can improve on that.
Beauty is in the eyes: Karic Corp., a company created by former principals of Helene Curtis Industries (which sold out to Unilever in 1996), merged with Salon 123, an Internet start-up, the new firm taking on the latter name. Former Curtis execs involved include Ron Gidwitz, who had been CEO; Michael Goldman, previously chief operating officer; and Chuck Cooper, senior VP-corporate development. Dot-com Salon 123’s services include booking appointments. Karic received initial funding from Trident Capital.
– Soft Sheen Products is introducing a new hair care system called BREAKTHRU, backed by marketing communications, including TV advertising, from recently appointed Burrell Advertising. Burrell, also named for Soft Sheen’s other hair product lines, succeeds Spike DDB on the client.
– Women’s Advertising Club of Chicago honors Linda Wolf, CEO of Leo Burnett USA, as its “Adwoman of the Year” at a luncheon June 7 at the Drake Hotel. Wolf is the second Burnett executive to win the award in the past four years. Cheryl Berman, now Burnett USA’s chairman-chief creative officer, was honored in 1997. The club is eyeing a turnout of 400 for the luncheon honoring Wolf; so far reservations are slightly less than 300. For info, call 312-263-2215.
– Stacy Shaw, recently with Hyatt Hotels Corp., became an executive VP and a managing director at Draft Worldwide Chicago. Other personnel: USA Weekend magazine promoted Mark Sarsha to retail sales development manager in its Chicago ad sales office, which recently added Ray Faust as an account executive. … Richard Taylor to an account director at Robinson & Maites.
Strictly Personal: Birthday greetings to James W. Aldrich, 60 (Delaware Place Bank); former Chicagoan Suzan Donnelly, 46 (husband Gene is a BMW exec at U.S. headquarters in New Jersey); consultant Ralph Rydholm, 63; Arabel Alva Rosales, 41; John Tague, 38 (American Trans Air); jewelry designer Amy Doehla, 33; violinist-orchestra leader Franz Benteler, 75; and David Leli, 53 (Times-Mirror Magazines).