So how will the sale of VS affect ADS? VS is their biggest client and I remember them saying when I worked at ADS, if we loose VS, we are doomed. Will the new buyers keep the partnership?
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Alliance Data has a contract that protects the agreement in the event of a sale. So for at least 7 years business as usual. Also helps that the new owner group already works with ADS on other card programs.
ADS also just renewed a long term agreement with Caesars.
VS was sold to Sycamore Partners. Sycamore Partners also houses Torrid. As you know, Torrid is also handled by ADS
Depends on what is written in the contract between ADS and VS, specifically the wording of the 'change of control' clause.
'Change of control' clauses in contracts give each party certain rights when there is a change in ownership. Or in this case, when a part of the other company is sold.
Depending on how the clause is written, nothing may change - ADS will keep the VS card and everything will be business as usual. Or, the partial sale could allow VS to let other banks and ADS re-bid on being the credit card issuer.
Again, depends on what is in the contract.
Who knows? The company is screwed whether we keep VS or not.