The bridge loan, originally provided by Guines and Aimia, enabled Kognitiv to borrow $1.6 million in preparation for the Chapter 11 filing. According to court filings, as of December 2024, the company owed:
- CA$43.6 million ($30.9 million) to Guines
- CA$7.5 million ($5.3 million) to Aimia
Creditors and Financial Woes
The bankruptcy comes on the heels of Kognitiv Corp.’s parent company’s insolvency proceedings in Canada, initiated in December 2024. The filing attributes the collapse to mounting losses, negative retained earnings, difficulties securing funding, and increasing creditor pressure.
Financial records show a steady decline in the company’s financial health:
- 2022 losses: CA$49.8 million ($35.3 million)
- 2023 losses: CA$35.5 million ($25.2 million)
- 2024 losses (through November): CA$30.2 million ($21.4 million)
Among Kognitiv’s creditors, notable unsecured claims include:
- KPMG LLP – $31,236
- Carry Technologies – $15,000
- Thomson Reuters – $11,425
Business Operations and Workforce Impact
Kognitiv, headquartered in Minneapolis, specializes in customer loyalty and marketing technology solutions, using proprietary data-driven platforms to help brands personalize customer engagement. It is wholly owned by Loyalty Solutions Holdings US Inc., a subsidiary of Kognitiv Corp., which also oversees subsidiaries across Europe, the U.S., Australia, and Asia.
