It's easy to criticize the past. The point was Futura Rewads may cease to exist after the restructuring. Breakage revenue, which Futura shows on its books each quarter, shows that the credits are not being redeemed by customers.
But that's the little worry. The big worry is if the company will even exist. The CCAA proceedings will only encourage the other creditors to come forward and demand immediate payment. Until now only Aeroplan was wanting their money, which started this CCAA process. But it also exposed Futura's true debt situation that many did not know about. I didn't know Futura was in default with Aeroplan. That was a shocker.
Where do we go from here? Is the company finished? Will Aeroplan cancel the contract with Futura. Should the US expansion continue? Should designing custom loyalty programs be continued by Futura? These take up time and resources for essentially a start-up company. They have been in business for years and I still call it an start-up company. And now they may even be finished.
It's painful to talk about it. The loyalty business is unpredictable, as management says in the recent court filing. I question if Futura should continue as a reseller or even be in the loyalty business at all, if more of the same will occur in the future? Or swing into another direction and salvage some shareholder value.