Vice Media, once a paragon of the digital era, filed for bankruptcy on Monday, a dramatic fall from grace for a company once valued around $5.7 billion.
A group of lenders could acquire Vice out of bankruptcy for $225 million, The New York Times reported , and the company will continue to produce content. But the bankruptcy will make years of massive investments by the likes of Disney and the Murdoch family worthless .
The company’s co-chief executives, Hozefa Lokhandwala and Bruce Dixon, released a statement Monday saying the bankruptcy filing would eventually strengthen the company and usher in a new chapter.
“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,” the pair said in a statement to the Times.
The bankruptcy had been expected for weeks . Fortress Investment Group, among the lenders that submitted a bid for Vice, plans to maintain a role for the company’s co-founder, Shane Smith, if it’s successful, the Times added.
Executives at Vice had attempted to broker a sale and breathe fresh life and profitability into the company, but a deal never appeared. Last month Vice canceled its flagship “Vice News Tonight” show and announced a “painful” round of layoffs across the news division.
It’s been a rough year for digital media outlets. BuzzFeed, the owner of HuffPost, shuttered its eponymous news division and laid off about 15% of employees last month.