Global publisher Vice Media files for bankruptcy with debts of $1.2bn
Vice Media, the global youth-focused publisher once valued at almost US$9 billion (AU$13.4 billion), has filed for bankruptcy.
Paperwork filed in the United States on Monday shows debts of US$834 million (AU$1.24 billion), but the company, which operates titles including Vice News, Refinery29 and Vice TV, could live on.
The New York Times reports operations will continue for now while a group of creditors – including billionaire George Soros – discuss acquiring parts of Vice.
Those backers have offered a temporary loan to keep the lights on and there is now a deadline of 55 days to complete a sale, the newspaper revealed.
The Vice and Refinery29 brands are licenced and operated in Australia by Pedestrian Group, part of Nine, and its chief executive Matt Rowley today said “there are no changes to [their] presence in their local market”.
“Any [Vice Media Group] corporate issues are matters for them to comment on,” Mr Rowley said.
“Far from the VMG brands slowing down locally, Refinery29’s [Australian] team expanded this week with a new hire. VICE AU remains strong in market and has expanded into New Zealand with new staff hires.
“In the past week, [we] have published more than 50 stories across the local editions of VICE and Refinery29, as well as 28 TikTok posts across our five active and rapidly growing accounts, 61 Facebook posts and 31 Instagram posts.
“We’re certainly still in the market, and we’re certainly still having an impact.”
Despite that, the Australian arm of Vice had been eerily quiet in recent days, with no new content on its site between May 12 and this morning, when the US bankruptcy filing was announced.
Its Twitter account hadn’t posted since May 5 until late this morning in the wake of media reports.
Speculation first emerged at the start of May that the global publisher and broadcaster was close to financial collapse.
Sale talks have been underway for months but recently stalled and last-ditch attempts by the company to restructure and trim staff ultimately proved futile.
Current co-chief executives Bruce Dixon and Hozefa Lokhandwala will remain with the company while its future is decided.
“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.
It marks a spectacular reversal of fortunes for Vice, which once courted an enviable list of enthused investors ranging from Rupert Murdoch to the Disney Corporation and had planned an ambitious launch on the US stock exchange.
I’m still so surprised that Vice didn’t cash in and sell up years ago.
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