Monday, March 31, 2025

17019: Adding SWANA Chorus To DEIBA+ Swan Song In Adland.

Advertising Age published a perspective advocating for DEIBA+ that ultimately dilutes the global discussion by introducing yet another underrepresented group—SWANA (people of Southwest Asian and North African descent).

 

Increasing the number of marginalized segments in Adland, however, does not lead to an increase in crumbs. Rather, it probably increases indifference and disinterest from the ruling majority.

 

BTW, April is SWANA Heritage Month. Don’t expect major brands to present performative promotions recognizing the event.

 

DEI Retreat Empowers Brands To Create Work Driven By Conviction, Not Policy

 

Standing outside DEI’s frame gave Southwest Asian and North African creators a clear view of how to create true change

 

By Mohammad Gorjestani

 

As DEI evaporates across culture and industry, a critical question remains: Whose vision of diversity was being implemented in the first place? For the advertising and creative industries, DEI’s retreat represents a significant loss and a seismic shift in what gets produced, whose voices are amplified and whose careers advance.

 

For Southwest Asian and North African (SWANA) creatives, however, it’s business as usual—we’ve been operating and hustling outside these structures all along.

 

I was born in Iran to artist parents and grew up in Section 8 housing in the San Francisco Bay area. My studio, Even/Odd, was founded out of necessity. Coming from a low-income background with no higher education, the unconventional stories I wanted to tell from the margins—and the way I wanted to tell them—lacked mainstream appeal.

 

I’ve been primed throughout my life to develop an attuned instinct that, among many things, has helped me see through the theater of concepts reminiscent of “DEI” long before they morphed into industry buzzwords.

 

These frameworks have always been cropped, flattening the “different” into digestible categories that conveniently excluded communities such as mine. SWANA identities aren’t just overlooked; our exclusion reveals DEI’s fundamental design flaws. What’s happening now isn’t a retreat. It’s power shedding a temporary disguise, returning to form after a brief, unconvincing performance.

 

The calculated blind spots in DEI’s vision

 

SWANA is not even considered an official minority group. Census designations label us “white,” erasing our lived experience. This bureaucratic fiction is absurd given decades of post-9/11-ism, travel bans and interventions in the Middle East.

 

When agencies establish quotas for diverse suppliers, we do not “count.” The National Minority Supplier Development Council doesn't recognize SWANA-owned businesses. The result? Systematic exclusion from economic opportunities that are supposedly designed to uplift marginalized communities. 

 

While the industry congratulated itself for progress, our exclusion from minority recognition revealed DEI's fundamental contradiction: a framework supposedly built for inclusion that selectively determined which communities deserved recognition. The system welcomed dissent, but only to a point. The glaring omission of SWANA reveals just how unserious and haphazard DEI education has been.

 

For example, the same industry that spent a year championing Black Lives Matter was, like the rest of culture-at-large, absent in 2023—the deadliest year of police killings on record in the United States. This erasure exposes the nature of corporate DEI efforts: diversity was always more about fashion than reform.

 

The advertising and creative industry's approach to diversity also created a monolithic ecosystem where talent was compartmentalized by identity. Black creators were given agency to create work about Black culture and Asian creators for AAPI month, while white creatives maintained the freedom to explore any subject at any moment. This pigeonholing isn’t just limiting—it can be a career dead-end, leaving creators with nothing once identity opportunities dry out.

 

Let’s get past the ‘Struggle Olympics’

 

DEI also inadvertently turned diversity into the “Struggle Olympics”—creators competing for limited resources by chasing the latest DEI trend. This dynamic pushed many toward reactive work, where cosplaying activism became a necessary tool to gain visibility. Many were reduced to reactive commentators rather than multidimensional visionaries. And the worst part is that people began to play into this and abandon that inner artist.

 

SWANA’s exclusion in DEI frameworks made me refuse to engage in projects that felt sentimental rather than singular or substantive. Too often, DEI initiatives encouraged work that allowed dominant audiences to feel momentarily moved without having to confront structural realities. That kind of performative engagement was the canary in the coal mine.

 

Terms such as BIPOC are also an issue, flattening distinct cultural experiences and erasing the specificity that gives stories their power. Iran, a multiethnic country distinct from the Arab world, is frequently lumped into vague “Middle Eastern” representation. Within agencies, SWANA creatives rarely received even the limited recognition given to other marginalized groups. When visibility came, it was often reduced to creating “Middle Eastern” campaigns or Muslim-focused content, disregarding the region’s and diaspora’s rich diversity of faiths, cultures and perspectives.

 

True diversity means freedom to create beyond prescribed boundaries. Creative autonomy should be a universal right. Excellence is multiplied by authenticity, but when agencies reduce diverse creators to cultural representatives rather than full-fledged artists with unlimited potential, they practice sophisticated tokenism, not inclusion.

 

The future of DEI—or whatever it might be called next—requires the advertising and creative industry to fundamentally rethink its approach. If its blind spots regarding SWANA communities can be addressed, it might offer a blueprint for a more substantive framework—one that creates genuine opportunities for paradigm-shifting work rather than reactive, identity-based slots.

 

Agencies, brands, and studios should examine their talent pipeline, asking not just “Do we have diverse creators?” but “Are we allowing all creators the same self-determination?”

 

We also need to separate cultural equity from economic equity. There’s a difference between an industry promoting diversity on its website and an industry ensuring diverse founders have access to real capital and opportunities. If DEI 1.0 served only to help existing institutions navigate this moment unscathed, then we must be vigilant about what comes next. The goal should not be to help these structures shape-shift into the next trend but to demand new pathways that challenge their dominance altogether.

 

The silver lining of this moment is that it offers a lot of clarity—revealing who remains committed to genuine inclusion and who has retreated to the next industry trend. As the corporate spotlights dim, we can now distinguish between fickle allies and those in for the long haul. This is an opportunity for agencies to reexamine their principles and create work driven by conviction, not manufactured policy.

 

Ultimately, we must move beyond DEI as a label and toward what it should have always represented: the critical understanding that the most vital creative breakthroughs emerge from the periphery. And investing in the infrastructure to support that is necessary—not just for the SWANA community, but for everyone who has been excluded from the industry’s prescribed narratives. When we can create from outside the center, we create new reference points that shift the status quo.

Sunday, March 30, 2025

17018: Performative Promotion For Patronizing Prizes.

 

This promotion for Campaign’s Inspiring Women Awards is uninspiring and unworthy of awards. It appears to be stereotypical stock imagery too.

 

Despite that, the event will probably draw plenty of entrants seeking performative prizes, as well as generate profit for the publication.

Saturday, March 29, 2025

17017: WTF Is Smokey Bear Smoking?

 

Smokey Bear is celebrating 80 years of preventing wildfires together.

 

Yeah, nice job on preventing those California wildfires, dude.

Friday, March 28, 2025

17016: TRG Is Not Too Black.

 

Advertising Age reported TRG is taking the next step in its evolutionary progression, as an Old White Guy will succeed the Old White Guy CEO who replaced the Old White Guy Founder.

 

TRG Names New CEO As Glenn Dady Announces Retirement

 

Longtime principal Pete Lempert is set to succeed Dady on March 31

 

By Lindsay Rittenhouse

 

TRG has named longtime principal Pete Lempert as its new CEO, effective March 31, as Glenn Dady announces his retirement.

 

Dady has been CEO since 2019 and is set to retire after 45 years with the Dallas-based independent agency. Lempert first joined TRG in 1994 and became principal in 1996. He also added the titles of chief development officer and managing principal in 2024, according to the agency.

 

Lempert “has the perfect combination of creativity and business acumen,” Dady said in a statement. “He is a proven leader who has consistently delivered results for our clients while improving the employee experience and culture within the agency.”

 

In his 31 years at the agency, Lempert has led business for brands including Corona, Nokia, Advance Auto Parts, Amstel Beer, Charles Schwab and Orkin.

 

“It’s an honor to lead this incredible independent agency into our next chapter,” Lempert said in a statement, adding that “TRG and the marketplace have shifted dramatically over the past five years. ... We are well positioned for the future, where bold ideas will be nurtured to succeed in a rapidly changing marketplace.”

 

TRG’s current client list includes Charles Schwab, America’s Best Eyecare + Eyewear, Scripps Health, Sewell Automotive Cos., World’s Best Cat Litter and Nature’s Own.

 

TRG rebranded from The Richards Group in 2022, distancing itself from its founder Stan Richards, who stepped down in October 2020 following a racist remark he made during an internal meeting. Dady, who had worked alongside Richards for 39 years and took the reins from him, was tasked with addressing the fallout from the founder’s actions, including a string of client losses and employee departures.

 

Last year, TRG lost longtime client Stellantis-owned Ram, one of the few big-name clients that stuck by TRG after the 2020 backlash. Stagwell’s Doner won lead creative duties for Ram in December following a Stellantis U.S. agency review.

Thursday, March 27, 2025

17015: Cannes Lions, Cannes Liars.

 

MediaPost reported Cannes Lions International Festival of Creativity awarded the first ‘Creative Country Of The Year’ trophy to Brazil—a place notorious for scam ads, cultural cluelessness, and countrywide racism. It feels like Time ‘Person Of The Year’ going to Donald Trump.

 

Brazil Is Named Cannes Lions First ‘Creative Country Of The Year’

 

By Steve McClellan

 

The Cannes Lions International Festival of Creativity has unveiled a new award — Creative Country Of The Year — and the first recipient is Brazil, which will be honored at the festival in June. 

 

The organization said that the annual accolade recognizes a country’s consistent success at the Festival as well as “a country’s exceptional and enduring commitment to creativity that drives progress and growth.”

 

As part of that recognition this year, the 2025 Festival will feature Brazilian creative showcases, celebratory events, dedicated stage talks and Brazilian-led activations across the City of Cannes, including the return of FilmBrazil, which will host a networking event.

 

Sponsoring this year’s award is Brazilian daily newspaper Estadão, a long-time supporter of the Festival and which celebrates its 150th anniversary this year.  

 

Brazil won its first Lions at the 1971 Festival, collecting two Bronze Lions for Cinema and a Silver Lion for Television. In 1975 it brought home its first Gold Lions, and in 1993 it was awarded its first Grand Prix for ‘The Guarana Diet Campaign’ by Dm9 Publicidade for Guarana Antarctica. Since then, it has gone on to win 1911 Lions, 20 of which have been Grands Prix. 
 
In 1972, Alex Perissinoto served as the first Brazilian Juror, and Christina Carvalho Pinto, the first woman to lead a multinational communication corporation in Latin America — the Young & Rubicam Group — served as the first female Juror from Brazil in 1990. To date, more than 400 Brazilians have served on Cannes Lions Juries. Brazil’s Marcello Serpa brought home Latin America’s first Grand Prix and was honored with the prestigious Lion of St Mark in 2016. 
 
Washington Olivetto, who died last year, was known as the ‘Godfather of Brazilian Advertising’ and winner of Brazil’s first Gold Lion and more than 50 Lions across his career. A special tribute will be made to him at the Festival. 

Wednesday, March 26, 2025

17014: International Women’s Day & Global BS.

Goodby Silverstein & Partners celebrated International Women’s Day by gushing over performative promotional work produced for its client, Argent, featuring a film written by Jeff Goodby.

 

Okay, just to clarify, International Women’s Day was saluted by a White man who waited over three decades to grant a White woman partnership at his White advertising agency.

 

Feels like perfectly patronizing performative PR.

Tuesday, March 25, 2025

17013: “DEIBA+ Playbooks” Play With Reality.

 

Advertising Age published a perspective opining brands need a better DEIBA+ playbook.

 

The viewpoint presumes brands even have a playbook.

 

Based on reality, most brands (like White advertising agencies) have a cookie-cutter collection of performative PR, patronizing pranks, and box-checking heat shields. And the execution is delegated to Chief Diversity Officers, ERGs, and/or resident representatives of the underrepresented—all of whom lack legitimate authority and power.

 

BTW, it doesn’t help that most brands (like White advertising agencies) are really working with an anti-DEIBA+ playbook—aka systemic racism.

 

6 Ways Brands Can Stay True To Inclusive Values And Rebuild Trust

 

Recent backlash is a warning sign—brands need a better DEI playbook

 

By Rana Reeves

 

As the current administration chips away at foundational policies and rights, brands aren’t sure whether to flee or freeze—the only options available at the moment since nobody appears to be fighting for DEI. The result for almost all brands has been either silence or damaging statements that go against previously stated values.

 

Long before the election, CMOs were asking whether brands should celebrate Pride, acknowledge Black History Month or invest in employee resource groups. Every move feels risky amid backlash from both sides.

 

But rather than retreat, brands need to rethink their approach. The solution isn’t abandoning equitable practices—it’s evolving the actions into something more inclusive, acknowledging that America is a broad tent of viewpoints, and finding ways to work across polarization.

 

The risks of missteps are clear. In January, Target scaled back racial hiring targets and its Racial Equity Action and Change initiatives while pulling back on Pride merchandise after conservative backlash. This led to planned boycotts from liberals and a sharp drop in February earnings, alongside calls for a 40-day boycott during Lent from prominent Black churches.

 

All this happens amid broader economic concerns: produce shortages, tariffs and inflation. While brands have little control over these factors, one crucial lever they can pull is brand affinity. When prices rise, strong brand identity and consumer loyalty make the difference between maintaining sales or losing customers to cheaper alternatives. It just so happens that DEI has been, and will continue to be, a driver of brand affinity.

 

The old playbook isn’t workable, but brands can move to a model that continues to platform and center specific audiences while embracing a broader consumer base:

 

Focus on the future

 

Companies can argue they embrace inclusivity because it’s the right thing to do, but the more compelling case to leadership is that it drives long-term growth. America is becoming more diverse across every demographic. A recent Gallup survey found that more than 20% of Gen Z adults identify as LGBTQ+. Brands that overreact to backlash by completely abandoning DEI initiatives aren’t just making a political statement, they’re alienating a growing consumer base.

 

The path forward isn’t about picking sides, it’s about balance. Brands can be mindful of execution, such as placing LGBTQ+ campaigns in age-appropriate spaces, but pulling back entirely is a mistake. Unless a brand serves an exclusively conservative audience, erasing DEI efforts weakens its ability to connect with an evolving consumer landscape. That’s why brands such as Delta, Costco, and Apple stand their ground. They know inclusivity isn’t about avoiding controversy—it’s about long-term brand health.

 

Don’t backtrack—find a different way forward

 

As Target struggles while Costco sees a 15% increase in foot traffic—brands recognize a pattern. Target should be a cautionary tale. After George Floyd’s murder, it committed to diversifying supply chains and stocking products from underrepresented founders. Rolling back these efforts isn’t just a moral misstep—it’s a financial risk. Urban consumers view Target’s shift as a betrayal.

 

The pattern repeats: Conservative boycotts drive temporary stock dips, and progressive consumers react. Brands that abandon commitments out of fear alienate the very customers who drove their success. Instead of making reactionary decisions, brands need a measured, long-term strategy that balances authenticity with business sustainability.

 

Build around universal principles

 

This attack on DEI might actually push brands toward more inclusive thinking. Some backlash stems from a sense of exclusion, particularly among white, straight men. True inclusivity doesn’t prioritize one group over another—it creates a broader framework that welcomes everyone while understanding the barriers some face and addressing these.

 

It’s important to note that DEI is a broad term that includes women, the disabled community and veterans. Rather than following a rigid DEI calendar, brands should focus on universal themes that intersect across communities, such as Veterans Day, disability inclusion, gender equity in STEM and Giving Tuesday.  Future brand engagement isn’t about checking boxes—it’s about fostering equity in ways that matter to diverse communities.

 

Take care of employees

 

Rolling back DEI efforts doesn’t just affect public perception—it impacts workplace morale, retention and culture. Employees want to work for brands that align with their values. When a brand’s actions contradict its long-established identity, it creates a disconnect that’s tough to repair.

 

One way to stay engaged is to give employees time and support to volunteer for causes they choose. A food company can focus on food insecurity through an intersectional lens, considering how hunger affects urban and rural communities differently. Encouraging employees to contribute to community-driven initiatives helps build a brand’s social impact while reinforcing company values.

 

Align your business and your products

 

Too often, DEI initiatives feel disconnected from product truths, making them appear forced or exclusionary. Brands can develop products addressing income, opportunity and safety. Poverty, the opioid crisis and public safety concerns don’t discriminate. A liquor company could create a product detecting drinks that have been spiked. A transportation company could innovate on physical accessibility features. These are real issues with real solutions that align with business objectives.

 

Some brands are already adapting. Toyota shifted from broad DEI initiatives to focusing on STEM education. While this makes sense for an automotive company, STEM can still be approached intersectionally—supporting mothers returning to work, veterans transitioning careers and teaching Hispanic girls to code.

 

Break out of the cold

 

Many brands are paralyzed, unsure how to proceed amid political backlash, economic pressures and legal uncertainty. But staying frozen isn’t a strategy. The key is to adapt, not retreat.

 

Brands shouldn’t lose their values but should learn how to communicate them in ways that resonate with a broader audience. Doing good doesn’t have to be framed as diversity—it just needs to be framed differently than before.

Monday, March 24, 2025

17012: Private Equity Has No Relation To The Equity In DEIBA+.

 

Adweek published content on private equity firms showing interest in Adland, foreseeing a “coming wave of PE buying and investing in creative agencies.”

 

Well, sure, the White holding companies are no longer interested in purchasing more White advertising agencies, as each conglomerate is overfilled with commoditized people, practices, and properties. So, it falls on other entities to provide financial support to sustain shops.

 

The piece is titled with a question: “Your Agency Just Sold To Private Equity. Now What?”

 

The Answer: Probably the same thing that would happen if your agency just sold to a holding company—there will be an initial phase to weed out redundancies and optimize profitability, followed by the departure of legacy leaders. That is, people will be released or relieved, and the business will be streamlined or strangled.

 

It’s a sharp kick to the privates.

 

Oh, and DEIBA+ will be prioritized far after redundancies, revenue, reductions, reengineering, rejuvenating racism, and rent.

 

Your Agency Just Sold To Private Equity. Now What?

 

As PE dealmaking in the agency world heats up, experts share what to expect after an acquisition.

 

By Alison Weissbrot & Brittaney Kiefer & Rebecca Stewart

 

Interpublic Group (IPG)’s sale last week of R/GA to private equity (PE) firm Truelink Capital signals a coming wave of PE buying and investing in creative agencies, industry leaders tell ADWEEK.

 

R/GA is not the only agency that has recently sold to PE: last year, Svoboda Capital Partners invested in creative agency Highdive; Keystone Capital invested in Barkley, which then merged with OKRP; and independent media agency Brainlabs nabbed funding from Falfurrias Capital Partners (FCP). 

 

Other PE deals in the ad arena include FCP’s investment in digital shop Said Differently; Shamrock Capital’s (which also owns ADWEEK) stake in experiential consultancy DE-YAN; and Growth Capital Partners minority investment in U.K. social agency Coolr. 

 

As private equity dealmaking in the ad industry heats up, ADWEEK spoke to experts about what agency leaders can expect under PE ownership. 

 

PE buyers are getting more sophisticated

 

While PE firms have invested in agencies over the past 10 to 15 years, their targets have mostly been performance marketing firms, said Michael Seidler, CEO of M&A advisory firm Madison Alley, pointing to deals like New Mountain Capital’s 2020 acquisition of Tinuiti from another PE firm, Mountaingate Capital.

 

“Following the Tinuiti [deal], so many groups saw the success of data-driven performance marketing groups and thought that they could replicate that,” he said. 

 

In contrast, PE firms historically saw creative agencies as project-based and talent-driven businesses, and therefore less predictable, Seidler added. 

 

But recently, there has been growing interest in creative and “tech-enabled” shops, said Lisa De Bonis, chief executive of Huge, a former IPG agency that sold to PE firm AEA Investors in December. 

 

“I’m convinced this is the next wave,” De Bonis told ADWEEK. “As a natural consequence of the adoption of tech more broadly, and how quickly consumer behaviors and businesses are having to transform, private equity firms are seeing that tech-enabled creative services are an area of growth. They’ve woken up to it.”

 

When Brainlabs sold a minority stake to London PE firm Livingbridge in 2019, CEO Daniel Gilbert said M&A advisors set up meetings with holding companies and threw some PE outliers in the ring. He went in with some “negative preconceptions” of PEs as investors that “ruined businesses” by stripping down assets, sacking the CEO, and loading them with debt. But, he kept an open mind.

 

“We did meet some like that, and immediately said, ‘that’s not for us.’ But then we met this whole other bracket of PEs which was more growth-oriented and believed in our business,” he said. 

 

Seidler said that PE sophistication in this space has increased, pointing to firms like Mountaingate Capital, New Mountain Capital, Shamrock Capital, and Insignia Capital Group as a new crop of agency buyers that have seized the opportunity–and learned more about how to successfully operate agencies along the way.  

 

“It’s completely changed; there aren’t that many PE houses without some form of investment in marketing services or media or the advertising landscape,” Gilbert said. 

 

Long-term growth on a short-time horizon

 

While PE firms figure out how to operate creative agencies, those agencies are getting used to the PE playbook. 

 

PE firms typically give their acquired companies a three-to-seven-year timeline to increase their value before exiting. During that period, they’re given capital to make “strategic acquisitions to enhance the growth and enhance the multiple,” said Seidler.

 

“[PE firms] are in the business of growth, so there is capital. That didn’t happen in our previous situation,” said De Bonis. “There is a focus on performance and business excellence that is important and critical to our long-term growth.”

 

Gilbert said for Brainlabs, PE backing has resulted in a “growth-oriented” structure that has allowed the agency to complete 10 acquisitions since 2019, including social agency Fanbytes and digital shop Sparro. By 2023, the agency had grown eightfold, with client billings over $1 billion, while headcount increased from 250 to 850. 

 

When the time came to sell again, U.S.-based FCP purchased a 55% stake.

 

While Gilbert said he considered selling to a holding company, he didn’t want the “pressure” of quarterly earnings to force decisions in the interests of investors rather than clients.

 

“A holding company is full of traditional agencies, so you’re in this conservative model, and [bound by] the constraints that wash across a full holding company and all the compliance issues of being public,” Seidler agreed. “[PE-backed agencies] have capital behind them, and they can look for acquisitions, and they can grow in other ways versus grinding it out to organically grow.” 

 

A more focused offering 

 

PE owners eliminate the pressure facing holding companies to sell fully integrated offerings across historically siloed assets, Seidler said, leaving agencies to get “the focus and the attention to prioritize their needs on a standalone basis.” 

 

He pointed again to New Mountain Capital, which in addition to Tinuiti, holds a stake in healthcare marketing agency W2O and digital transformation company Bounteous. “They have three different businesses that are singularly focused and aligned to build the best performance marketing agency they can,” he said.

 

Under AEA Investors’ ownership, Huge has zeroed in on its core capabilities of digital product design and customer experience, De Bonis said. “It’s not about what else we can do or how we diversify. It’s about how we make this stronger, better, and more performative.” 

 

For Brainlabs, FCP’s focus on long-term growth versus short-term payoffs has led to bigger upfront investments in talent, including graduate programs. 

 

“If you were in a holding company structure, that sort of investment would look expensive without yielding something short-term to point to in terms of efficiency or production, and therefore difficult to justify,” said Gilbert. “But because PEs [usually plan to] sell, [FCP] knows we need a sustainable way of recruiting, training and producing talent.”

 

Preserving culture is key

 

For a PE ownership to be successful, agencies must find partners that understand the importance of preserving the cultures of these talent-led businesses. 

 

“The thing that’s different is with agencies, they’re run by people,” Seidler said. “So preserving the culture matters, and even making acquisitions that are compatible with the culture matter a lot.”

 

Gilbert said that in the sale process, Brainlabs met many PE firms that asked questions that indicated they didn’t understand the sector.

 

“They were used to investing in businesses where you could point to the infrastructure. They did not like the concept that all the people could leave, and maybe all the clients could leave as well,” Gilbert said. 

 

For agency staff, there’s the bonus of a greater link between their performance and the growth of the business, according to De Bonis. 

 

“For people at Huge, there is now this focus on performance that directly links to their own growth that they didn’t have before. It’s a simple conversation: we grow, you grow,” she said. “We’re able to distribute the value creation, which means equity and performance-related compensation.”

 

For Gilbert, the structure Brainlabs currently operates under, where management owns 45% of the business, is working. “It’s a nice balance between good governance, as well as client, and future-centric behavior,” he said. 

 

But depending on the nature of the deal, some founders might experience culture shock, particularly at independent agencies. These entrepreneurial leaders will have to adjust to board oversight and a level of rigor they didn’t have as sole proprietors. 

 

“For many of these founders, they’ve been running the business by themselves and making decisions by themselves,” Seidler said. “You now have someone that you report to.”

Sunday, March 23, 2025

17011: H&M TTFN BFABW WTF.

 

Adweek reported H&M broke up with Buy From A Black Woman—and paid the price in the form of an $83K check to settle outstanding debts. Sounds like a Diary of a Mad Black Woman spinoff.

 

H&M Pays DEI Nonprofit $83K Debt After Abrupt End To Partnership

 

The partnership between the retailer and Buy From a Black Woman ended last week after a breach of contract

 

By Cydney Lee

 

H&M has finally paid non-profit Buy From A Black Woman (BFABW) the $83,000 it owed the organization nearly a month past its due date, ADWEEK has learned.

 

After the partnership between H&M and the nonprofit organization had recently ended due to what BFABW claimed was a breach of contract, founder Nikki Porcher received an overnighted check from the retailer on March 14 for $83,333.33, per a video obtained by ADWEEK. 

 

The money was originally due by Feb. 17, according to Porcher and an email sent to H&M from BFABW’s legal team, for a holiday market event that occurred at the end of last year.

 

H&M confirmed to ADWEEK that “all sums owed to Buy From A Black Woman have been paid in full, and no sums remain outstanding.”

 

“H&M took immediate steps to rectify the situation,” the brand said in a statement.

 

A partnership gone sour

 

BFABW, which provides resources and guidance to Black women entrepreneurs, first partnered with H&M in 2021. Over the years, the two collaborated to produce events and activations in H&M stores nationwide.

 

Porcher said the first two years of the partnership were seamless. But in 2023, it transitioned from the sustainability team to the brand’s inclusivity and diversity team, and Porcher said she was left out of meetings and decisions about the partnership.

 

The big turning point, Porcher said, happened when an International Women’s Day (IWD) event scheduled for March 2 was canceled. She was under the impression that the IWD event would be replaced by a new denim fashion activation later that month, according to an email thread seen by ADWEEK.

 

Porcher argued in the email thread that the IWD event had been a key part of BFABW’s partnership with H&M, and was outlined in the contract. 

 

H&M said in a statement: “H&M presented this event as an opportunity to further promote and amplify the partnership and we deny that this was a requirement, change of plans, or a breach of contract in any way.”

 

H&M said that BFABW stopped communicating with H&M, “including requests for an open dialogue to ensure we were supporting the organization in a way that continued to support their vision.”

 

Porcher sought legal counsel after learning about the change in plans around the IWD event, and found that H&M the retailer owed $83,000 by Feb. 17. 

 

Porcher declined to sign a termination agreement drawn up by H&M, where she claims the brand offered her $100,000 to “quietly walk away” while continuing to use the BFABW name and programs.

 

The agreement, obtained by ADWEEK, states that Porcher would be prohibited from defaming H&M publicly and that the brand can only use BFABW’s name and logo in its 2024 Inclusion and Diversity Report.

 

H&M and BFABW both agreed to end the partnership on March 12.