Vice Media LLC, the once-revolutionary media company known for its conversational and occasionally brash style, filed for Chapter 11 bankruptcy on Monday. The move follows a tumultuous few months during which the company failed to find a buyer and experienced significant financial challenges.
Fortress Investment Group, a key holder of Vice's debt, is expected to assume control through the bankruptcy process. The filing will provide some relief from the excessive debt weighing down the company while its lenders endeavor to recover their investments.
In 2017, Vice had been valued at $5.7 billion after securing a $450 million investment from private equity firm TPG. It also garnered praise for its news reporting and documentaries; this included sharing a Pulitzer Prize in 2020 as well as taking home multiple Emmy awards for Vice News Tonight.
A group of lenders that includes Fortress Investment Group and Soros Fund Management has secured a $20 million loan allowing Vice Media continued operations during this time. If no better bid arises, this lender consortium will acquire the struggling media giant post-bankruptcy.
The Southern District of New York received Chapter 11 petitions detailing assets and liabilities ranging between over $500 million up to as much as $1 billion. With more than an estimated 5,000 creditors involved in these proceedings, it remains uncertain how funds will be distributed among unsecured parties.
Over recent years traditional media companies invested heavily into Vice throughout the early-to-mid-2010s - including Walt Disney Co., Fox Corp., and others - but now have little return on investment with valuations falling by roughly half since 2015.
In April alone late-stage layoffs affected over 100 staff members, and the company's flagship TV news show ceased production.
Vice Media Group encompasses popular websites such as Vice and Motherboard. Now under Chapter 11 protection to facilitate sale proceedings, the future of these sites remains uncertain but cautiously hopeful for better days ahead.