NEW YORK (AP) — Vice Media on Monday filed for Chapter 11 bankruptcy protection, the most recent digital media company to falter after a meteoric rise.
A consortium of lenders — Fortress Investment Group, Soros Fund Management and Monroe Capital — is buying Vice for about $225 million, in addition to taking on a significant amount of the company’s debt. Other parties will be able to submit bids as well.
Vice said it expects the sale to be wrapped up in the next two to three months. It said that during the process its media brands will continue to produce content and the company will keep paying its employees and vendors.
In a prepared statement, Vice co-CEOs Bruce Dixon and Hozefa Lokhandwala said the “accelerated court-supervised sale process” will strengthen the company and position it for long-term growth, “thereby safeguarding the kind of authentic journalism and content creation that makes VICE such a trusted brand for young people and such a valued partner to brands, agencies and platforms.”
“One of the things that I think really hurt Vice, and in turn BuzzFeed as well, is social media networks like Facebook changing their algorithms,” Jason Mollica, professor at American University’s School of Communication, said. “When you’re not pulling in the numbers that you would expect advertising-wise, you’re losing money.”
