Vice Media heads for bankruptcy after laying off staff: Report

The American-Canadian digital media and broadcasting company Vice is preparing to file for bankruptcy, New York Times has reported citing two people with knowledge of its operations.

As per the NYT report, the media firm has received interest from five companies and might consider a sale to avoid bankruptcy. The report further added that in the event of a bankruptcy, which could happen in the coming weeks, Vice's debtholder Fortress Investment Group could end up controlling the company. 

This news of bankruptcy comes just days after after the well-regarded TV and online video outlet laid off staff and canceled its flagship program Vice News Tonight. Last week, Vice Media said it will cancel popular TV program "Vice News Tonight" as part of a broader restructuring that will result in job cuts across the digital media firm's global news business, capping years of financial difficulties and top-executive departures.

Vice, which operates a cable channel of the same name and creates documentaries and other video content for its own outlets and others, was once valued at $5.7 billion. Investors included Walt Disney Co. and Fox Corp., although their equity may now be worthless, the Times said. Its largest debt holder is Fortress Investment Group, according to the newspaper.

This potential bankruptcy also comes at the time when several other media and technology firms have had to downsize in recent months due to a challenging economy and a weak advertising market.

Earlier this month, BuzzFeed Inc said it would shutter its news division, which gained renown for its irreverent and probing coverage, but ultimately succumbed to the challenges of its digital-first business model.