Gallop attacks Mediacom

Gallop & Gallop Advertising has lost its transit shelter advertising contract for Hamilton to Mediacom, prompting company President Peter Gallop to allege his competitor has been trying for years to put him out of business.Yvonne McKinnon, a spokeswoman for Toronto-based Mediacom...

Gallop & Gallop Advertising has lost its transit shelter advertising contract for Hamilton to Mediacom, prompting company President Peter Gallop to allege his competitor has been trying for years to put him out of business.

Yvonne McKinnon, a spokeswoman for Toronto-based Mediacom dismisses Gallop’s allegations.

McKinnon says Mediacom welcomes competition and does not want to put anyone out of business.

Toronto-based Gallop says both his company and Mediacom bid the same amount for the Hamilton transit shelter rights – $1.5 million.

But, Gallop says Mediacom was able to pay ‘up front,’ while Gallop & Gallop payments were more of a ‘back end’ type of deal.

McKinnon says she cannot discuss the financial details of the contract.

Gallop says Mediacom will pay the Hamilton Street Authority, which oversees the Hamilton Street Railway, $300,000 the first day of each year for five years.

Gallop & Gallop has held the transit shelter contract in Hamilton for eight years.

The city’s new deal with Mediacom begins in January.

The Hamilton official in charge of the shelter contracts was sick at home at press-time and could not be reached for comment.

Gallop says Gallop & Gallop still has transit contracts in Ottawa, Edmonton, Brampton, Ont. and Hull, Que. that last for six or seven more years.

A feud between Gallop & Gallop and Mediacom has been simmering for some time.

An outdoor Shop Canada campaign awarded almost entirely to u.s.-owned Mediacom and other outdoor companies in the national Poster Network (which includes Canadian-owned suppliers of outdoor facings) prompted Canadian-owned Gallop & Gallop to respond with Maple Leaf flags, posters and decals on its outdoor properties on Sept. 26, Raise the Flag Day.

At that time Gallop said the flags, posters and decals were his company’s show of support for the Yes side in the Oct. 26 referendum and a way to show his dismay at the federal government’s decision.

The Shop Canada campaign was worth $2 million. Gallop & Gallop’s share was worth $60,000.

Elsewhere, Gallop confirms his company is the largest unsecured creditor in the Publicite Grey bankruptcy in Montreal.

He says Gallop & Gallop is on the hook for $130,000, although the client in the deal, Fruit of the Loom, co-signed the contract.

Gallop says he expects to reach an agreement with that company soon, and that the receivers in the bankruptcy are suggesting payments to unsecured creditors of 20 cents to 50 cents on the dollar.