#Vice Media Files for Bankruptcy (Report)

After weeks of speculation, Vice Media filed for Chapter 11 bankruptcy protection Monday to smooth a sale of the company.

Bloomberg reported that Vice listed both assets and liabilities in the range of more than $500 million to as much as $1 billion in a Chapter 11 petition filed in a New York court. Bloomberg reports that Fortress Credit Corp. ranked among the biggest secured creditors, with claims totaling about $475 million.

In the face of a weak advertising market, a turbulent economy and fierce competition from bigger tech and legacy media, Vice, like fellow digital media darlings BuzzFeed and Vox Media, has struggled to manage costs and grow revenues.

Filing for bankruptcy is a new low for a company that was once one of the hottest media brands around, and boasted investment from the likes of Fox Corp. and Disney. At one point Vice was reportedly valued at $5.7 billion and was set on a path for a stock market listing.

But the Brooklyn-based company has suffered greatly from a series of internal problems and outside factors that it had little control over. In particular, 2023 has proved to be something of annus horribilis for Vice, with Nancy Dubuc stepping down as CEO in February. The veteran media and TV executive had led Vice since 2018, when she succeeded co-founder Shane Smith in an effort to professionalize and grow the media company. Jesse Angelo, Vice’s global president of news and entertainment, left in March.

In April, Vice shuttered its flagship TV news show and laid off more than 100 staff.

More to come…