edia firm Vice has filed for chapter safety within the US after bosses struggled to discover a purchaser for the modern news agency.
The Chapter 11 submitting at a court docket in New York is setting the stage for the corporate’s collectors to take management over the enterprise.
It marks a fall from grace for the enterprise, which shot to prominence within the 2010s with a type of journalism designed to draw youthful audiences.
It comes only a month after BuzzFeed, one other new media firm which achieved nice success a few decade in the past, stated it will shut its news division and make intensive layoffs.
The Chapter 11 submitting will enable Vice to proceed working as regular. Such filings aren't unusual amongst US corporations, and in lots of circumstances the enterprise can come out of chapter and proceed to construct nice success. These have included corporations akin to Marvel Entertainment and General Motors.
Vice stated that it had an settlement with its lenders which is able to see them purchase the corporate, except a greater bid comes alongside.
The lenders embrace Fortress Investment Group, Soros Fund Management and Monroe Capital. They would purchase the corporate’s property for about 225 million US {dollars} (£180 million). In 2017 the enterprise was valued at 5.7 billion {dollars} (£4.5 billion).
“Vice serves a huge global audience with a unique brand of news, entertainment and lifestyle content,” stated Bruce Dixon and Hozefa Lokhandwala, co-chief executives of the corporate.
In a joint assertion, they stated: “This accelerated, court-supervised, sale process will strengthen the company and position Vice 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.
“We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business.
“We look forward to completing the sale process in the next two to three months and charting a healthy and successful next chapter at Vice.”
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