Vice Media Group problems comes amid waves of media layoffs and closures, including shuttering of BuzzFeed News.

The New York Times report comes days after Vice closed down its Vice News Tonight program.

Vice has received interest from five companies and might consider a sale to avoid bankruptcy, the Times report said, adding that in the event of a bankruptcy, which could happen in the coming weeks, Vice’s debt holder Fortress Investment Group could end up controlling the company.

The company is expected to continue operating normally in event of bankruptcy filing, NY Times reported.

A Vice spokesperson did not directly comment on the bankruptcy report in a statement, but said the company “has been engaged in a comprehensive evaluation of strategic alternatives and planning” and that “its board and stakeholders continue to be focused on finding the best path”.

The potential bankruptcy hits at a challenging moment for the industry, as several other media and technology firms have had to downsize in recent months due to a challenging economy and a weak advertising market.

This month, BuzzFeed said it would shutter its news division, which gained renown for its irreverent and probing coverage, but ultimately succumbed to the challenges of its digital-first business model.

Last week, Vice Media said it would cancel its popular TV program Vice News Tonight as part of a broader restructuring that would result in job cuts across the digital media firm’s global news business, capping years of financial difficulties and top-executive departures.

News reports estimated that more than 100 employees would be laid off as part of the restructuring.

Vice was among a group of fast-rising digital media ventures that once commanded rich valuations as they courted millennial audiences. In 2017, the company was valued at $5.7bn.

It rose to prominence alongside its provocative co-founder, Shane Smith, who built his media empire from a single Canadian magazine.

One of Vice’s other co-founders, Gavin McInnes, is now better known as the founder of the Proud Boys, a far-right group whose leaders are now facing seditious conspiracy charges for their actions during the January 6 insurrection in Washington.

Source | New York Times