In a turn of fortunes, Vice Media Groups prepares to file for bankruptcy

Vice Media Group, the organization behind popular media sites such as Motherboard and Vice, is preparing to file for bankruptcy, according to people with knowledge of the company’s operations.

The media organization has garnered interest from five firms and might consider a sale to circumvent bankruptcy. In the result of a bankruptcy, which is possible in the coming weeks, Vice’s debt holder Fortress Investment Group could end up controlling the organization.

The company’s spokesperson said that the Vice Media Group was engaged in a wide-ranging evaluation of strategic alternatives and planning. The organization, its board and stakeholders were also continuing to be focused on finding the best path for Vice Media Group.

Vice Media Group’s impending bankruptcy arises as numerous technology and other media companies have had to downsize in recent months due to a weak advertising market and a challenging economy.

Last week, Vice Media canceled popular TV program “Vice News Tonight” as part of a wider restructuring. Vice Media was among a group of fast-growing digital media organizations that once commanded rich valuations as the millennial audience were their primary audience. The media organization rose to fame alongside its incendiary co-founder, Shane Smith, who put together his media empire from a single Canadian magazine.