Vice Media, once the darling of the digital news media world, said Monday it had filed for Chapter 11 bankruptcy protection to facilitate its sale.
Millennial-focused Vice, known for its edgy news and lifestyle content, had been among the rising stars of a new breed of digital media firms but struggled as advertising revenues shrank.
Vice said it had agreed to the terms of an asset purchase agreement with a consortium of its lenders which includes Fortress Investment Group, Soros Fund Management and Monroe Capital.
The consortium had submitted a credit bid of about $225 million "for substantially all of the Company's assets, in addition to the assumption of significant liabilities upon closing," Vice said.
"To facilitate the sale, Vice has filed voluntary petitions for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York," it said in a statement.
In its Chapter 11 petition with the court, the New York-based company said it had estimated assets of between $500 million and $1 billion. It also estimated it had more than 5,000 creditors.
In 2017, Vice Media was valued at $5.7 billion -- more than the market capitalization of The New York Times at the time.
Vice's difficulties come after the closure of fellow free digital media groups BuzzFeed News as ad revenues dried up and both had struggled to attract new investments, taking on debt to stay afloat.