published Wednesday, February 9th, 2011

Chattanooga: Incentium announces it has ended business operations

Incentium LLC, a provider of business and customer incentive programs located on Cherokee Boulevard, has announced on its website that it has ended business operations.

Once known as VIPGift, the business said “difficult business and economic conditions” had forced the firm to “permanently cease all business operations effective February 9, 2011.”

The webside statement company assets “will be liquidated in an orderly manner for the benefit of its creditors.”

The statement said correspondence about the matter should be sent to Incentium Liquidation, P.O. Box 4069, Chattanooga, TN 37405 or emailed to: liquidation@incentium.com.”

In previous company releases, Incentium was described as being backed by Summit Partners, a growth equity investor, and Bridescale Partners, a private equity and venture capital fund.

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chatttn said...

I don't normally post anything negative, but having been a former employee, I have to say this couldn't have happened to a better company.

February 9, 2011 at 1:29 p.m.
mrredskin said...

so does that mean they will re open the Loft?

February 9, 2011 at 3:10 p.m.
mrblue said...

I worked for this company for many years until today. This company just released some of the brightest people i've ever had the pleasure of working with into our local job market.

There will undoubtedly be rumors in the coming days regarding the causes, but the truth is the fault here lies squarely with the firm who purchased the company and the chain of poor decisions they made.

February 9, 2011 at 3:25 p.m.
josoro said...

What people need to understand is that 80 people of overhead in a business that makes 1-4% gross margin on resale of gift cards, is not sustainable unless you do tens or hundreds of millions in revenue. Everything else (all the other loyalty services) are window dressing. Gift card redemptions drove revenue. It's a hyper-competitive business with billion dollar companies managing the lion share of loyalty programs; which really amount to fulfilling gift cards these days.

I only hope that the employees and creditors are able to recoup any losses. This is unfortunate, but a flawed business approach.

February 9, 2011 at 6:02 p.m.
mymy said...

As part of the transaction, Summit Partners and Bridgescale Partners brought in Richard Char as president and Patrick Gildea as senior vice president of finance and corporate development."

The people to blame above are what I call well educated idiots or crooks. I wonder who they are destroying now. They were fired and left behind a big mess. Probably snowed someone else with their embellished resumes and are sitting pretty somewhere.

Amen mrblue!

February 9, 2011 at 7:44 p.m.
ketut said...

All I can say is "Karma is a bitch"

February 9, 2011 at 10:38 p.m.
ellissmith said...

Anyone who can share firsthand information about Incentium should e-mail esmith@timesfreepress.com

February 10, 2011 at 1:50 p.m.
GoodKarma said...

I agree with ketut statement. What goes around comes around. It was just a matter of time.... Someone forgot to practice good karma.

February 10, 2011 at 3:35 p.m.
Loyaltyworks said...

It is unfortunate that a leading business in the incentive marketing space failed so suddenly, leaving customers in a difficult situation. Loyaltyworks is an Atlanta-based provider of incentive services - if you are a former Incentium / VIPGift client in need of program assistance feel free to contact me - we might be able to help.

Loren Weaver loren.weaver@loyaltyworks.com http://www.loyaltyworks.com

February 14, 2011 at 3:15 p.m.
GBO81 said...

Seriously? You're going to shill for your company when 80 people suddenly lost their jobs? Stay classy, Ms. Weaver. That is truly one of the most ridiculous things to post given the circumstance. I hope people treat you better if your business shuts its doors. If this is indicative of your operations style, you may soon join Incentium.

February 14, 2011 at 3:36 p.m.

Who knows. Maybe the owners should have burned the building, instead. It worked before.

February 14, 2011 at 3:57 p.m.
Marathon5454 said...

The Mark IV friction fire

February 15, 2011 at 10:37 a.m.
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