Following its meteoric rise, Vice Media has filed for bankruptcy protection, joining the list of digital media companies that have encountered challenges in recent times.

On Monday, Vice Media announced its agreement to sell its assets to a consortium of lenders, which includes Fortress Investment Group, Soros Fund Management, and Monroe Capital. The deal involves a credit of $225 million. Additionally, other interested parties will have the opportunity to submit their bids.

Weeks after announcing the cancellation of its flagship Vice News Tonight program and implementing employee layoffs, Vice Media has filed for Chapter 11 bankruptcy. 

The company's decision to cancel the program was projected to affect over 100 employees out of a workforce of 1,500, as reported by The Wall Street Journal. Additionally, Vice Media disclosed its plan to discontinue the Vice World News brand, consolidating its operations under the Vice News brand globally.

Chapter 11 bankruptcies, as outlined in the United States Bankruptcy Code, serve as a means to safeguard financially burdened companies from their creditors. This protection aims to enable the company to either be sold or reorganised in order to regain profitability

Amidst a wave of media layoffs and closures, Monday's filing adds to the list of affected companies. This includes recent job cuts at the Gannett newspaper-publishing chain, National Public Radio, and The Washington Post. 

In April, BuzzFeed Inc also made headlines when it announced the closure of its Pulitzer Prize-winning digital media outlet, BuzzFeed News, as part of cost-cutting measures implemented by its parent company.

Major tech companies, ranging from Google to Facebook, have experienced a decline in profitability due to the current uncertain economic climate and a significant decrease in digital advertising sales.

Vice Media traces its origins back to 1994 when the original punk magazine of Vice was launched in Montreal. Subsequently, the company relocated to New York and rapidly expanded, establishing itself as a prominent global media company.

Throughout its history, Vice has gained recognition for its bold and confrontational journalism, covering daring stories across the globe. In addition to its media outlets, the company possesses valuable assets, including film and TV production divisions, an internal marketing agency, and renowned brands like Refinery29 and Unbothered.

In the face of financial challenges, the media company has encountered difficulties in generating profits in recent years. To address its financial crunch, Vice reportedly obtained $30 million in debt financing from Fortress Investment Group in February, as reported by The Wall Street Journal.

According to Co-CEOs Bruce Dixon and Hozefa Lokhandwala, the sale process will enhance the company's strength and set it up for long-term expansion. They believe that this will help preserve the genuine journalism and content creation that has established VICE as a trusted brand among young people and a valuable partner for brands, agencies, and platforms.