BMO is planning to buy the Air Miles loyalty program for undisclosed terms after its parent company filed for creditor protection.

LoyaltyOne, which currently operates Air Miles, has filed for protection under the Companies’ Creditors Arrangement Act in Ontario, connected to parent company Loyalty Ventures filing for Chapter 11 bankruptcy in its home base of Texas.

BMO has signed a purchase agreement to acquire the Air Miles business, pending regulatory and other customary conditions. As LoyaltyOne is filing for protection under the CCAA, that includes a solicitation process for interest in the company’s assets. BMO’s acquisition or any competing offer that may arise from that process would be subject to approval from the Ontario Superior Court of Justice.

BMO was a founding partner of the Air Miles program in 1992, and is currently its biggest. The acquisition, the bank said in a statement, will help “reinvigorate” the program. Air Miles remains one of the largest loyalty players in Canada, with approximately 10 million active collector accounts, who are able to amass points at more than 300 brands and thousands of retail and service touchpoints.

However, Air Miles has struggled as major partners have left the program. Last year, Sobeys and other Empire-owned grocery stores left Air Miles to help expand Scene+, while the LCBO switched to Aeroplan in 2021. Other retailers that have left the program in recent years include Staples, Lowe’s and Rona.

According to Loyalty Ventures’ most recent financial reports, Air Miles’ revenue decreased 6% year-over-year for the quarter ended Sept. 30, though miles issued increased by 2% and miles redeemed increased by 45% amid strong recovery in the travel sector.

“As a leading partner, we have always believed in the value of the Air Miles program for Canadians and are confident about the continued opportunities to build even greater customer loyalty,” said Ernie Johannson, group head of North American personal and business banking at BMO, who adds that the acquisition would “bring the ownership of Air Miles home to Canada and strengthen its offering for Canadian consumers and businesses together with leading Canadian, global and online program partners and merchants.”

Meanwhile, Air Miles Reward Program president Shawn Stewart says the takeover is a significant step toward solidifying the loyalty plan’s future. The buyout, he stresses, has no impact on Air Miles collectors’ Reward Miles balances or on collectors’ ability to collect and redeem rewards.

Air Miles recently explored the metaverse, extending earning opportunities into virtual environments in a partnership with blockchain investment company Tokens.com and web3 marketing and virtual real estate developer Metaverse Group.

This January, Air Miles announced the hiring of a new chief customer officer, veteran marketer Justine Melman, who’s led led marketing and customer experience efforts at national and international organizations, including eBay, Cineplex Entertainment, Holt Renfrew and the Globe and Mail. Last fall, Air Miles named Pomp & Circumstance its PR AOR and also announced it had struck a deal with Pattison Food Group, which counts well-loved Western Canadian discount grocer Save-On Foods among its store banners.