Youth-skewing Vice Media on verge of bankruptcy, New York Times reports

Bruce Dixon (left) and Hozefa Lokhandwala

Youth skewing Vice Media Group is on the cusp of filing for bankruptcy, according to a report in The New York Times (NYT).

The company has been exploring a full or partial sale since this time last year and five companies are currently circling Vice, but in the event that a buy-out doesn’t materialise the NYT says bankruptcy will follow with control of the company passing to its main creditor Fortress Investment Group.

A spokesperson for the company told the NYT: “Vice Media Group has been engaged in a comprehensive evaluation of strategic alternatives and planning. The company, its board and stakeholders continue to be focused on finding the best path for the company.”

The digital-first company was grown out of a Canadian magazine business by founder Shane Smith.

It counts Smith, Disney, A+E Networks and TPG Capital among its owners and operates the Vice Studios television and film division, the Vice TV network, Vice News, online brand Vice.com and creative agency Virtue. Its portfolio of assets also includes Refinery 29, London-based Pulse Films and social media agency Carrot Creative.

The company had been valued as high as US$5.7bn in 2017 but amid significant headwinds, including an advertising slowdown and contracting audience numbers, Vice had already announced a restructure and around 100 job cuts, as well as the axing of its long-running Vice News Tonight series.

CEO Nancy Dubuc departed in February after five years with the firm – she originally made a high profile move from the CEO role at A+E Networks in 2018.

Chief financial officer Bruce Dixon and chief strategy officer Hozefa Lokhandwala were appointed co-CEOs.