Neverblue Parent Company Files for Bankruptcy
As one of the top affiliate marketing programs in the business, many are surprised to find that Neverblue has filed for bankruptcy. This has led to a lot of questions regarding the current state of the company, including how financial woes could affect affiliates.
Velo Holdings, Inc. is the parent company of Neverblue as well as many other subsidiaries including Vertrue and Lave Life.
According to multiple reports, the company was forced to file for Chapter 11 bankruptcy due to huge losses related to re-billing as well as increased regulatory control.
According to the company’s bankruptcy filing, it is dealing with more than $1 billion in debt. However, the company has plans to restructure this debt and continue to operate under the terms of the bankruptcy.
To help quell growing angst among affiliates, Neverblue has released the following statement:
This filing will not impact Neverblue’s ability to meet client needs in any way – we intend to continue to operate business as usual without interruption. Neverblue’s business is fundamentally strong and we intend to make all affiliate payments on schedule, in a timely and reliable manner. We’ve built out our global, performance-based online marketing strategy across several unique verticals, and now operate one of the largest international cost per action networks. Neverblue is absolutely well-positioned for future growth as one of the most highly-valued lead generation companies.
What are your thoughts? Do you plan on sticking with Neverblue or will their financial issues force you to move to another affiliate program?
Update, 4/5/12 from Neverblue:
In response to recent industry posts Neverblue would like to clarify the following to our partners.
Neverblue’s parent company, V2V Holdings LLC and its U.S. subsidiaries, today filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code. Neverblue was not included in this filing. V2V intends to use the Chapter 11 to restructure its balance sheet and ensure the long term financial health of key businesses.