Former Canadian online news company Vice Media Group has filed for bankruptcy protection from its creditors.
The company, started in Montreal and once valued at $5.7 billion U.S., had been restructuring and cutting jobs in recent months as its struggled financially.
A consortium of Vice’s lenders that includes Fortress Investment, Soros Fund Management, and Monroe Capital is now considering buying Vice Media following the bankruptcy filing, according to multiple media reports.
The group set to buy Vice Media would provide $225 million U.S. in the form of a credit bid for most of the company’s assets along with its financial liabilities.
Known for websites such as “Vice” and “Motherboard,” Vice Media Group is one of several digital media firms forced to restructure this year amid a weak online advertising market.
In April, Buzzfeed shutdown its news division and announced layoffs.
Founded in Montreal in 1994 as a fringe magazine, Vice expanded online with youth-f content and a prominent social media presence.
However, the privately held company endured several years of financial troubles as tech giants such as Google (GOOGL) and Meta Platforms (META) took the majority of online ad revenue.
Vice Media, which moved its headquarters to New York City in 2001, has now filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.
If its application is approved, other parties will be able to bid for the company.
The consortium that is considering a bid includes a commitment of $20 million U.S. in cash that would enable Vice’s operations to continue throughout the sales process.
The bankruptcy process is expected to conclude within three months, the company said in a written statement.
