DISTRESSED DAILY: Competition Saps Loyalty Venture’s Earnings

Inflation that’s sapping consumers’ spending power is denting Loyalty Ventures Inc.’s ability to keep its rewards programs competitive.

The Dallas, Texas-based company -- which operates loyalty programs where customers earn points that can be redeemed for products and services elsewhere -- has struggled to sign with new retailers as many of its partners have gone on to start their own loyalty programs or left to work with competitors, raising doubts about Loyalty Ventures’s ability to boost its bottom line.

The company’s adjusted earnings alone are not enough to cover its fixed charges, according to a recent note from S&P ...