Vice Media to file for bankruptcy as it becomes latest company to collapse

• Vice, founded in Montreal in 1994 as a free magazine: valued at $5.7 billion in 2017 with 3,000 employees
• The company had a cable network, more than a dozen websites, two shows on HBO, an advertising agency, a film studio, a record label and a bar in London
• Vice has struggled in recent years: respected CEO Nancy Dubuc left the company in February and the company is now reportedly preparing for bankruptcy

Vice Media is preparing to file for bankruptcy – after attempts to find a buyer for a company that was once worth $5.7 billion have seemingly gone nowhere.

More than five companies have expressed interest in acquiring Vice, the New York Times reported Monday, but the chances of a sale are being assessed as increasingly slim.

Vice’s demise comes just over a week after BuzzFeed News announced its closure and three months after Vox laid off 130 employees, or 7 percent of the workforce.

If a buyer isn’t found, Vice’s biggest debtor, Fortress Investment Group, could control the company.

Vice would continue as normal and hold an auction to sell the company over a 45-day period.

Fortress holds senior debt, meaning it ranks first for a payout. Other investors – including Disney – have already written off their investments and are not getting their money back, sources told the newspaper.

“Vice Media Group has engaged in a comprehensive assessment of strategic alternatives and plans,” Vice said in a statement Monday.

‘The company, its board and stakeholders remain focused on finding the best path for the company.’

Founded in Montreal in 1994 as a free magazine, the company peaked in 2017 and was considered the avatar of new media.

Its founder, Shane Smith, shook the establishment with his brash approach and provocative style, personally venturing into North Korea and the cartel-controlled Mexican wastelands to make rollicking documentaries.

Vice had 3,000 employees around the world working on a cable network, more than a dozen websites, two shows on HBO, an advertising agency, a film studio, a record label and a bar in London.

Headquartered in a hipster enclave in Brooklyn, it was considered the coolest place to work in town.

But in recent years, the company has struggled to gain a foothold.

Smith resigned in March 2018 after the New York Times published a disclosure of sexual misconduct within the company and the Wall Street Journal reported that Vice missed its annual sales target by $100 million.

He was replaced as CEO by industry veteran Nancy Dubuc, but she left the company in February this year along with Jesse Angelo, the company’s global president of news and entertainment.

Dubuc was replaced by longtime company insiders Bruce Dixon and Hozefa Lokhandwala as co-CEOs.

At the time, the two said: “We are both passionate about bringing the Vice brand, operations and creative spirit into the future and we are excited and grateful for this opportunity to continue to work closely with the board and the extraordinary.” Management team of VMG.

“This is an era of tremendous change for media companies, and Vice’s unique brand of news, entertainment and lifestyle content has never been more relevant.

‘We look forward to building on his success as we embark on the next exciting chapter for the company.’