Evoke in advertising dispute with American company
A local company is in a dispute with a US company concerning $350,000 worth of advertising commitments for the Bermuda International Airport.
Evoke International Ltd., a company owned by Walton Brown, had formed a partnership with US based Interspace Airport Advertising to operate a new advertising concession at the Bermuda International Airport under a newly formed company, Bermuda Airport Advertising Ltd., a company wholly owned by Evoke International Ltd.
However, the two companies have entered into a dispute and The Royal Gazette understands that at issue is the contract between Evoke and Interspace which would restrict Evoke from operating the advertising concession without Interspace's participation. The US company is now informing its clients that they should not proceed with new advertising at the airport, jeopardising what they say is $3.5 million in advertising commitments obtained by Interspace for the Government project.
However, Mr. Brown said yesterday that Bermuda Airport Advertising Ltd. and Interspace Airport Advertising - who have contracts at 175 airports in the US - could not come to an agreement as Interspace wanted control over the local company. “As a result, Bermuda Airport Advertising Ltd. has severed the relationship,” said Mr. Brown.
Mr. Brown said the department of airport operations was aware of this and also that Minister of Transport Dr. Ewart Brown was committed to proceeding with the contract between Bermuda Airport Advertising Ltd. and Government.
Mr. Brown said the contract had not yet received final approval in Cabinet as all contracts must, but added: “They (Cabinet) see the matter as a dispute between businesses which has no impact on the contract.” Mr. Brown also took issue with the figure of $3.5 million that had been quote as committed advertising revenue as he said this figure assumes the contract will run for ten years.
