Loyalty Ventures filed for creditor protection in the United States on Friday, and LoyaltyOne, its Canadian arm, did the same in Canada. In the Canadian filing Air Miles said it “operates in a competitive environment and is currently encumbered by significant funded debt imposed on it by its former U.S. parent company.”prior to November, 2021, when Loyalty Ventures was spun off into its own entity and listed on the Nasdaq at the very peak of the pandemic stock market boom.
Prior to the spin-off, a growing number of retailers were bringing their loyalty rewards programs in-house. Large Canadian companies doing so included Canadian Tire, which launched Triangle Rewards, and Rexall, which launched its Be Well program. Through the spin-off, Bread required Loyalty Ventures to borrow US$675-million and then transfer US$650-million to Bread. Bread also extracted another US$100-million of cash from Loyalty Ventures’ balance sheet.
Need my points.. cash 🤤
Honour my points!