By Graham Starr
Vice Media LLC, the once-hot media upstart known for its conversational and sometimes brash style, is preparing to file for Chapter 11 bankruptcy.
The company’s petition could come as soon as Monday, according to two people with direct knowledge of the filing. Fortress Investment Group, a critical holder of Vice’s debt, is likely to assume control via the bankruptcy, these people said, though other buyers could emerge during the bankruptcy process. Vice had sought but failed to find a buyer.
The firm’s bankruptcy caps a tumultuous few months. Brooklyn, New York-based Vice shuttered its flagship TV news show, Vice News Tonight, and laid off more than 100 staff in late April. In February, Chief Executive Officer Nancy Dubuc left after five years with the company.
A representative for Vice declined to comment on the bankruptcy filing.
It’s a precipitous fall for the company, which in 2017 was valued at $5.7 billion after securing a $450 million investment from private equity firm TPG. The figure was startling for a media upstart, especially while so many of its industry peers struggled to generate profits. Vice also drew funding from Walt Disney Co. and Fox Corp. as well as partnerships with cable juggernauts like HBO and CNN.
The company failed to find financial footing that lived up to its lofty valuation. Like other digital media companies, it was unable to turn traffic into profit, and struggled to gain a foothold in a new generation of consumers while pursuing expansions into e-commerce and other industries.
Vice started in Montreal nearly 30 years ago as a print magazine, but became popular among young audiences globally for its viral videos and irreverent approach to reporting. It courted celebrity chefs like Action Bronson, Eddie Huang and Matty Matheson to host original shows and debuted hits like Desus & Mero, which later had a four-season run on Showtime.
It also gained acclaim for its news reporting and documentaries, including sharing a Pulitzer Prize in 2020 and multiple Emmy wins for Vice News Tonight.