Wellness app Carrot Rewards, which had over one million users, has shut down

On Tuesday morning, the Toronto-based firm sent an email, obtained by The Logic, detailing its plan to shut down the app on Wednesday morning and its office by the end of the week. Then,  reached by phone Tuesday evening, CEO Andreas Souvaliotis said a last-minute buyer had stepped forward; he claimed nothing would be closed.

“There is a buyer that has been identified,” said Souvaliotis. “We are in a conversation, which warrants stopping the presses on what we had planned to do.” But on Wednesday, the company sent another email, saying the app had been shut down.

Carrot Rewards allowed users to earn points toward popular rewards programs by hitting walking goals and taking quizzes on topics like wellness.

The company had been looking for a buyer since April. It hired EY to do so at a $20-million sale price, according to a source with knowledge of the company. On May 1, Carrot lost the ability to issue Aeroplan points. Carrot also had difficulties with Cineplex and Scotiabank’s Scene loyalty program, to which it owes over two million dollars, and the company is filing for bankruptcy, according to the source.

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