As speculation rises over the future of the entire ad-tech ecosystem, independent ad tech outfit Sizmek has filed voluntary chapter 11 petitions.
Official paperwork was filed on March 29, with a press release dropping just before midnight Eastern Daylight Time, as the industry simmered with speculation that the company, co-owned by private equity firms Cerberus Capital Management and Vector Capital, was under serious financial strain
Per official documentation, Sizmek has recently been in discussions with its stakeholders regarding support of the company given its “over-leveraged balance sheet” in recent weeks.
“As a result of this action, Sizmek’s Board of Directors unanimously determined that Chapter 11 protection is the only responsible mechanism by which the Company can seek access to capital and preserve value,” the document reads.
“Sizmek’s Chapter 11 case is pending in the U.S. Bankruptcy Court for the Southern District of New York.”
Earlier this month, AdExchanger reported the company needed another investment round, with Adweek later reporting that its demand-side platform was running into security issues.
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