Vice Media declares bankruptcy

Vice Media has become the latest digital media company to falter after a meteoric rise.

The news outlet, popular with sites like Vice and Motherboard, has filed for bankruptcy protection in the United States as it tries to finalize its sale to a group of creditors.

The consortium submitted a credit offer of around $225m (€206m) “for substantially all of the company’s assets, plus the assumption of significant liabilities at closing,” Vice said. In 2017, Vice Media was valued at $5.7 billion.

Vice Media’s announcement on Monday comes after BuzzFeed Inc. announced last month that it would shut down BuzzFeed News as part of a cost-cutting campaign.

Deputy continues to operate

Vice, known for its bold news and lifestyle content, had early success with a digital model that revolutionized the traditional media landscape.

However, the company has struggled with falling digital advertising revenue.

The bankruptcy announcement comes just weeks after the company announced it would cancel its flagship program “Vice News Tonight” amid a wave of layoffs expected to impact more than 100 of the company’s 1,500 employees.

The company also said it would end its Vice World News brand.

On Monday, Vice media said its brands would continue to produce content and the company would continue to pay its employees and suppliers.

Chief executives Bruce Dixon and Hozefa Lokhandwala said the “court-supervised accelerated sale process” will strengthen the company and position it for long-term growth, “thus safeguarding the kind of authentic journalism and content creation that makes VICE such a trusted brand for young people and such a valuable partner for brands, agencies and platforms.”

In the US, there has been a broader wave of media layoffs and closures, including job cuts at Gannett, NPR, the Washington Post and other organizations.

lo/jcg (AP, AFP)