BBZ Resource Management, Inc. announced today that it has filed for Chapter 11 reorganization in order to preserve the value of its business for its creditors. BBZ also announced that immediately prior to its Chapter 11 filing, it entered into a new strategic relationship in order to preserve and maximize the value of its data mining business for the benefit of its creditors, business partners and other stakeholders.
BBZ's historical business involved both the sale of rebate certificates and the accumulation and use of consumer data. Recent events surrounding BBZ's rebate certificate business necessitated BBZ's Chapter 11 filing. Early in 2009, BBZ entered into a 15-year contract with Kidz Idz, Inc. to purchase $345 million of rebate certificates from BBZ. Kidz Idz' performance under this contract was personally guaranteed by Michael Pouls, the owner of Kidz Idz. Relying upon that contract, BBZ entered into a long-term lease for a new fulfillment facility and hired new employees to deal with the exploding demand for the rebate certificates that BBZ sold. Rather than honor that contract, however, Kidz Idz and Mr. Pouls not only breached their obligations but also undertook what BBZ believes to be concerted campaign to co-opt the rebate certificate business and destroy BBZ. This effort culminated with the Pouls Parties filing a lawsuit on Thursday, June 25, 2009 falsely asserting that BBZ's business is a fraudulent "Ponzi" scheme. Ironically, that same day BBZ was working with outside counsel to prepare its own lawsuit against the Pouls Parties asserting their breaches of contract and other wrongful conduct.
The damage to BBZs rebate certificate business from the Pouls Parties' conduct made it imperative that BBZ act to protect its consumer data mining business for the benefit of its creditors, business partners and other stakeholders. Accordingly, BBZ has entered into a contract with an industry leader to take that business forward in exchange for BBZ receiving a share of the business's revenues. This new relationship will form the foundation of BBZ's anticipated Chapter 11 plan of reorganization.
In the meantime, BBZ has suspended sales, activations, and redemption of rebate certificates, as well as gift card distribution. Consumers awaiting gift cards or holding certificates are encouraged not to contact the businesses or brokers that sold or gave away the certificates, as suspension of this program is beyond their control. BBZ is committed to honoring its obligations and will be working diligently with its outside professionals in the Chapter 11 process to maximize the return to its creditors.
Inquiries may be sent to BBZ's new mailing address: PO Box 11000, Mesa AZ 85214-1100.