Vice Preparing To File For Bankruptcy
Vice Media Group, the swashbuckling, youth-skewing digital media brand, is preparing to file for bankruptcy.
The company, which was valued at $5.7 billion in 2017, is considering the move after struggling to find a buyer, according to reports.
It comes after a tumultuous start to the year for the company, which saw Nancy Dubuc exit after five years, replaced by Bruce Dixon and Hozefa Lokhandwala, as well as the departure of Global President of News & Entertainment Jesse Angelo to launch his own production company.
Last week, the company underwent the latest in a series of layoffs, streamlining its news division and canceling its signature show in Vice News Tonight.
“Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning,” Vice said in a statement to the New York Times, which broke the news. “The company, its board and stakeholders continue to be focused on finding the best path for the company.”
The preparations come as the company is still searching for a buyer, which could happen over the next few weeks.
Fortress Investment Group is the company’s largest holder of debt and if Vice enters Chapter 11 would likely control the business.
The company was founded by Shane Smith, Suroosh Alvi and Gavin McInnes in 1994, initially as a gonzo magazine. It has subsequently launched a number of television divisions, including a linear channel, a studio arm and a new division in addition to a creative agency and web operation.
Source: Deadline
