Loyalty Ventures files for Chapter 11 bankruptcy protection

(Reuters) -Loyalty Ventures Inc said on Friday it had filed for Chapter 11 bankruptcy protection, after the provider of consumer loyalty solutions in November warned of pressure from Russia’s invasion of Ukraine, high inflation and rising interest rates.

The company’s shares tumbled more than 45% to 31 cents in early trading. The stock fell 92% in 2022 and has lost 76% so far this year.

Loyalty Ventures helps companies increase shopper traffic and customers by providing data and technology to manage customer loyalty programs.

The company, which will voluntarily delist from the Nasdaq, had $1.98 billion in liabilities and total assets of $1.59 billion at the end of the third quarter.

Canada’s Bank of Montreal will acquire Loyalty Ventures’ subsidiary’s rewards program AIR MILES for an undisclosed amount, the company said.

Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila