The Brooklyn-based media conglomerate filed for Chapter 11 after multiple capital raises, $834 million in debt obligations and a scuttled plan to go public.
has been cash flow negative for the past several years,” wrote Frank A. Pometti, a consultant hired as the chief restructuring officer of Vice Media, in a declaration in U.S. Bankruptcy Court Southern District of New York. “As a result,relied on external funding, raising both debt and equity capital to fuel its rapid growth and to fund expenses in certain parts of its businesses.
Since scrapping plans for an initial public offering, Vice Media has sought multiple suitors while undergoing a series of cost-cutting measures and layoffs capped by the cancellation of its flagship showin late April. Pometti also confirmed the company “is reducing its news related workforce during May and June 2023.”
The company, founded in Montreal in 1994 as an edgy and purposely offensive print magazine that changed its name to Vice two years later, has grown into a sprawling, Brooklyn-based global media conglomerate with multiple web verticals and a large video production division. Built by the salesmanship of co-founder Shane Smith, the brand unveiled Vice Broadcasting Systems TV as its initial major foray into digital video production in 2007.
The partnership kicked off a decade of rapid growth and investments from traditional media conglomerates interested in funding what was seen, through Smith’s swaggering pitch, as a company that could uniquely cater to a youth audience in an authentic way. “Who’s heard of VICE media?” Rupert Murdoch wrote on Twitter in October 2012. “Wild, interesting effort to interest millennials who don’t read or watch established media. Global success.
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