Vice Media filed for Chapter 11 bankruptcy protection on May 15th according to the Associated Press. A consortium of lenders is buying Vice for about $225 million, in addition to taking on a significant amount of the company’s debt – between $500 million and $1 billion.
The sale is expected to be wrapped up in the next 2-3 months. During that time they will continue to produce content and pay its employees and vendors.
The news comes weeks after the company announced it would cancel its flagship “Vice News Tonight” program amid layoffs. The company also announced it would end its Vice World News brand.
Commentators cite the drop in digital advertising dollars and Facebook changing their algorithm several years ago which took the focus off media in the feed.