Loyaltyone -航空裏程獎勵計劃業務

2023年3月11日,

蒙特利爾銀行購買航空裏程忠誠計劃後失去關鍵零售商,文件中債權人保護的沉重債務蒙特利爾銀行購買LoyaltyOne有限公司經營的航空裏程忠誠獎勵計劃,該公司申請破產保護後,沉重的債務和激烈競爭的結果。1992年在加拿大航空裏程了。蒙特利爾銀行BMO-T目前公司的主要合作夥伴,和許多的信用卡與忠誠獎勵計劃。蒙特利爾銀行購買航空裏程債權人保護的1.6億美元,再加上一些承擔責任。航空裏程計劃耗費夥伴在過去幾年。公司依靠強大的關係主要零售商,提供對客戶忠誠計劃的獎勵點,和接收市場數據和工具從LoyaltyOne回報。零售商也曆來喜歡程序幫助創建回頭客。合作夥伴航空裏程已經擺脫過去兩年包括LCBO——銷售酒精在加拿大安大略-勞和主食。2022年6月,航空裏程遭受了重大打擊,當零售商索貝,西夫韋,屬於同一家公司,離開了程序。當時,索貝關係代表大約10%的調整利息、稅收、折舊和攤銷的忠誠企業Inc . LoyaltyOne的美國的母公司。 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.” Air Miles was owned by Bread Financial Holdings BFH-N 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. Air Miles attributes its recent woes to two key variables: underinvestment in its business by Bread, and a heavy debt burden imposed by Bread as part of the IPO. 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. “Rather than investing in the loyalty programs business to adapt it to these emerging market trends, in Nov., 2021, Bread undertook a transaction to separate [it] into a newly created public company,” Air Miles wrote in its filing Friday. 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. Although Air Miles is still generating positive adjusted earnings before interest, taxes, depreciation and amortization – US$96-million in the first nine months of the 2022 fiscal year – the debt burden has hampered the company. It still owed US$656-million as of March 9, 2023. Although BMO has reached an agreement to buy Air Miles for US$160-million, the company has launched a sale and investment solicitation process (SISP), a common practice in creditor protection filings, and a higher bid could emerge. Despite the fact that Air Miles has been losing retail partners, the loyalty program has 473,000 clients whose miles are worth at least $1,000 each, according to the filing. Of these heavy users, 60 per cent hold Air Miles co-branded BMO credit cards. Last year the bank generated roughly half of all reward miles handed out. BMO did not return a request for comment. Over the past decade, Canada’s banks have invested heavily in loyalty programs, which are often tied to credit cards they issue. Rival programs to Air Miles include Royal Bank of Canada’s Avion Rewards and Toronto-Dominion Bank’s partnership with Aeroplan, which is now owned by Air Canada AC-T . In 2018, TD committed to $1-billion worth of upfront payments and future expenses to be Aeroplan’s lead financial partner. Banks like loyalty programs because they nudge clients to spend more using credit cards, allowing the lenders to earn what is known as an interchange fee on every transaction, as well as any interest on credit card balances. Banks also use loyalty programs as a defence against financial technology startups. Fintech companies often try to lure clients with lower prices, but banks fight back by allowing customers to earn loyalty points, which can be used on travel and a growing number of retail goods.