Vice Media files for bankruptcy as creditors prepare takeover

VP Shane Smith is expected to stay after the bailout deal. Credit: Pau Barrena/Bloomberg

Investors including George Soros are poised to take control of Vice after the digital media company collapses in bankruptcy protection.

Vice Media filed for US bankruptcy early Monday morning, owing up to $1 billion to her creditors in line with her bankruptcy. applying in New York.

It ends a long and painful slump for the youth-focused brand, once valued at $5.7bn (£4.5bn) and raising investment from Rupert Murdoch's Disney and Fox.

A group of creditors Vice, including Fortress Investment Group and Soros Fund Management, an investment group run by billionaire trader George Soros, is leading the buyout of Vice after filing for $225 million.

The group will not invest new money. Instead, the offer will be covered by Vice's existing credits, with buyers taking on the company's «significant liability» upon completion of any deal.

The sale process ends a turbulent period for Vice, which last month closed its World News brand and announced about dozens of «painful but necessary» job cuts.

The media group, which began life as a punk zine in 1990s Montreal, built a popular brand covering drugs, sex, and war zones.< /p> George Soros' fund management firm is involved in a $225 million bid to buy Vice out of bankruptcy. Photo: Jason Alden/Bloomberg

His valuation peaked at $5.7 billion in 2017, but along with rival digital publishers including BuzzFeed, he has struggled to cope with the downturn in the digital advertising market and the rise of new social media platforms. networks, including TikTok.

Vice struggled to deal with the situation. have been making profits for years and have gone months on a $250 million loan from Fortress and Soros Fund Management.

A group of lenders secured a $20 million loan to keep Vice running during the bankruptcy process . Along with its flagship brand, the group also owns an advertising agency, film studio, and women's site Refinery29.

Shane Smith, the outspoken founder of Vice, who was known for throwing rowdy parties and displaying his wealth, is expected to remain following the rescue deal, Bloomberg reports.

Josefa Lokhandwala and Bruce Dixon, co-CEOs, are also expected to remain with the company.

In a statement, Mr. Dixon and Mr. Lokhandwala said the bankruptcy sale would ultimately «strengthen the company.»

They added, «We look forward to completing the sale process in the next two to three months and planning for a healthy and successful next chapter in Vice.» .