Private equity-backed advertising platform Sizmek has filed for voluntary Chapter 11 bankruptcy petitions to “preserve value” and seek access to capital while it continues to review strategic alternatives. In an industry dominated by tech giants, the company was under serious financial strain.
In the official statement, Sizmek said it has been in conversations with stakeholders regarding the state of the company given its “over-leveraged balance sheet” in recent weeks.
Sizmek filed official paperwork on March 29 and there are eight bankruptcy petitions in total attributed to Sizmek and subsidiaries – Point Roll, Sizmek DSP, Sizmek Technologies, Wireless Artist, Wireless Developer, X Plus One Solutions, X Plus Two Solutions. The filing estimates that Sizmek’s assets are between $100 million and $500 million, with Sizmek’s four largest debts owed to Index Exchange, PubMatic, OpenX and AppNexus.
Sizmek’s Board of Directors unanimously determined that Chapter 11 was the most responsible decision and the company is looking to access its existing cash and intends to resume normal operations as soon as possible. The move may put Sizmek’s ad server on the market.
Not long ago Sizmek entered into a partnership with advertising marketplace Sublime in order to improve both audience targeting and their media inventories.
For now, Sizmek’s Chapter 11 is pending in the US Bankruptcy Court for the Southern District of New York.