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Neverblue’s Parent Company Files for Bankruptcy
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Neverblue’s Parent Company Files for Bankruptcy

by Pace Lattin2012-04-03

Velo Holdings Inc, the parent company of Neverblue, Lava Life and Vertrue has filed for Bankruptcy this morning, as reported by Reuters.

According to reports this is specifically because of enormous losses sustained from re-billing and continuity practices.

According to Dow Jones:

 Velo blamed, in part, tighter regulatory control of one of its online marketing practices for its strained finances. The method redirects customers who have completed a purchase on its discount retail website to another website, a Velo subsidiary that sells fraud and identity theft protection services, and asks the customer to enroll.

Velo defaulted on both its credit facilities in December to avoid a liquidity crisis, it said, prompting Moody’s Investors Services to downgrade the company’s debt ratings. As a result, Chase Paymentech LLC, Velo’s credit-card processor, notified Velo it would terminate their agreement on April 20.

According to its bankruptcy filing it has over $1 Billion in Debts, but will try to restructure its business and continue operations under Chapter 11.

We will continue to report this story as more information is available.

UPDATE: Neverblue has informed Performance Marketing Insider the following:

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.

About The Author
Pace Lattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.
37 Comments
  • 2012-04-03 at 11:45

    Wow, that’s insane 0.0

  • Jay
    2012-04-03 at 12:17

    Adios Neverblue.

  • WOW
    2012-04-03 at 12:21

    SMH…..WOW

  • nate
    2012-04-03 at 12:21

    $1B in debts?!!? That’s insane, that can’t be right.

  • Jim
    2012-04-03 at 12:26

    Same Owner of Vertue and Adaptive Affinity who buy a lot of media. They have been dicks about scrubs past month. explains why

  • 2012-04-03 at 12:26

    Now ,I think it comes to an end of CPA networks ,may companies are being shutdown

    • 2012-04-03 at 12:47

      Not the lean and mean companies that stay away from
      continuity offers and focus on real offers with real advertisers.

    • 2012-04-03 at 18:38

      I think you need to learn a little more about whats going on in the world of SEO and affiliate marketing, CPA is not dead. Nowhere’s near it.

      CPA is BOOMING as hard as ever. Neverblue is not going to shut down, but it will likely be sold to a different “parent company” when the current one has to sell off their assets.

  • William Silva
    2012-04-03 at 12:27

    Hehehe, the big gun are going down one after the other watchout for next

  • Buh Bye
    2012-04-03 at 12:34

    Another one bites the dust.

    They haven’t paid me yet. Anyone get paid?

    • Jonathan
      2012-04-03 at 16:19

      They’ve been paying me weekly for the last 2 years. I’ve never had a issue with them.

      Regardless of all this they are still my favourite network.

      • Buh Bye
        2012-04-04 at 07:35

        Maybe that was the problem, they were paying everyone WEEKLY, not business can survive and thrive without tons of cash to pay publishers weekly.

  • John M
    2012-04-03 at 12:39

    Looks like most of you have absolutely no idea what the difference between Chapter 11 and Chapter 7 is.

    • 2012-04-03 at 12:40

      When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.[1]

  • Boca Blonde
    2012-04-03 at 13:32

    All of these networks that are going down, are going down for two reasons – first, post transaction sales (which seems to be the case for Neverblue, that and the govt has been all over Vertrue and their kind for years). The second is because of review sites. These are blatantly fraudulent and confusing to the consumer. That is why these review site owners will never show you their creative for approval. If you can’t approve how your own product is being marketed, time to run. From what I can see, other networks that aren’t dealing with either are doing just fine.

  • JCash
    2012-04-03 at 13:42

    I love this blog

  • Dapo
    2012-04-03 at 14:07

    Yeah, thanks so much for this update Pace, this is why i stay subscribed to PerformInsider

  • 2012-04-03 at 14:13

    Neverblue can easly be sold right now, unless they declare bankruptcy themselves.

  • 2012-04-03 at 14:32

    I wouldn’t get too emotional about all of this at all..

  • john
    2012-04-03 at 17:50

    Looks like my am disapeared, along with department manager,
    see new names

    • kennyh
      2012-04-03 at 20:19

      Hi John,

      no AMs or department managers have disappeared. One of our AM’s moved departments thats all.

      If you need some help please get in touch

  • 2012-04-03 at 20:45

    best of luck everyone at neverblue! hopefully wont turn out like it did with copeac.

  • 2012-04-03 at 21:49

    Wow, I’m sure many people would have been taken by surprise with this news. Let’s hope they just keep paying their affiliates without any interruptions.

  • 2012-04-04 at 06:21

    It’s really unfortunate this is happening to Neverblue at this crucial time. It was among the best rated affiliate programmes on the net.
    At a time I considered joining them, but their approval process was funny that after much frustration, I decided to look for another Affiliate Programmes to join. Now I am really enjoying where I am.
    I would advise that you make proper research before joining any programme so you don’t end up being stranded.

  • 2012-04-04 at 07:47

    Lucky, i didnt join them because they dont approve me.

  • 2012-04-07 at 17:38

    Hi Pace,

    Wow, weren’t they one of the big dogs in CPA?

    Jen

  • 2012-04-18 at 13:32

    Hi There Performinsider,
    Speaking of which, The Bankruptcy Code contains many powerful provisions for protecting property and discharging debts. Occasionally a person will try to shuffle assets around to reach a more beneficial outcome during the bankruptcy. Self-help property transfers usually result in serious problems for the debtor and the bankruptcy attorney. As the saying goes, “Pigs get fat, hogs get slaughtered.”
    Good Job!

  • 2012-04-20 at 09:16

    It will be interesting to see how this all plays out. It wasn’t easy getting in and I enjoy working with them.

  • 2012-04-25 at 08:23

    thanks for this update, I’m sure lots of people have been taken by surprise with this news. In a way i feel glad i didnt join them

  • Rosie
    2012-05-02 at 12:33

    That’s what they get for scamming people.

  • 2012-05-03 at 09:54

    $1B in debts?!! wow!! That’s insane, wouldnt want that over my head

  • 2012-05-16 at 20:53

    NeverBlue used to be one of my favorite networks until I found MaxBounty, lol.

  • 2012-07-23 at 16:34

    Ok now that’s interesting Mr Pace Latin but I think Neverblue is still in business.

  • 2012-07-31 at 08:03

    yikes! Neverblue email me yesterday and said that i should try again to apply as their publishers since i am an old applicant who is being turn down due to some reason. do you think I should apply again?

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