As reported by the Performance Insider, Neverblue and their parent company are filing for Chapter 11 bankruptcy. Although they are not directly affected by this, they are listed as an asset or the parent company, Velo Holdings, Inc. Here’s the good and the bad of it as reported by The Performance Insider…
The Good News
Neverblue, from all accounts, is a highly profitable company in itself and has a strong business model. As they pointed out in their response, the company itself is not included in the bankruptcy protection, so they are able to pay all their affiliates on time. That’s the good news, which means that for the time being, you are going to be paid.The company has been a strong company for many years and continues to be a great part of the industry, service their affiliates, and most importantly has always paid on time.
The Bad News
However, despite this, things are not so simple. Even though they are not “included” in the Bankruptcy, there are a ton of issues that will come up that will affect the future of the company. The idea that Neverblue is not going to be affected by it’s parent company’s issues is incorrect. They are owned by that company, and are subject as an asset of the company.Since Velo Holdings owns Vertrue, which in turn owns Neverblue, the future of the company is in the air and may be for sometime. This means that anything could happen to the company, including it being sold in order to pay the debts of the parent company. We will not know for a long time what will happen to Neverblue, but more than likely they will be sold in the future, depending on how their parent company restructures. If Velo is not able to restructure this could mean additional issues. It will be up to the courts to determine this.
