Struggling media group Vice Media has filed for Chapter 11 bankruptcy protection to facilitate a sale of the company, aiming to secure its future amidst financial challenges and undergo a major restructuring.
Vice Media, the struggling media group behind Vice, Motherboard, and Refinery29, has filed for Chapter 11 bankruptcy protection in order to facilitate a sale of the company and secure its future. The filing reveals that the company has assets and liabilities valued between $500 million and $1 billion. A group of creditors, including Fortress Investment Group and Soros Fund Management, has made a conditional bid for the majority of Vice’s assets, offering approximately $225 million and assuming significant liabilities upon the deal’s closing. The sale process will allow other parties to submit higher bids over the next two to three months. Vice’s international entities and Vice TV are not part of the bankruptcy filing or the sale process. Vice recently announced a major restructuring that includes layoffs and the cancellation of its popular program, “Vice News Tonight.” The company hopes that the sale will strengthen its position and enable long-term growth by providing new ownership and a simplified capital structure. Despite having over 5,000 creditors, Vice expects to continue paying wages, benefits, and vendors throughout the sale process using the financing it has received.