Programmatic buy-side platform Sizmek has filed for voluntary Chapter 11 bankruptcy in the US, saying it is seeking access to investment capital to keep the company going.
According to a release, Sizmek had been in “extended discussions” with stakeholders to tackle the company’s “over-leveraged balance sheet”, but Sizmek’s primary lender took control of its accounts and cut off access to capital.
“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 while it continues to explore value-maximizing alternatives,” the statement said.
Sizmek has considerable Asia-Pacific operations, with 19 offices across 11 countries listed on its website. The company has a large ad operations centre in Cebu in the Philippines, as well as sizeable teams in Singapore and Malaysia.
It remains to be seen how much Sizmek’s APAC operations will be affected by the US bankruptcy proceedings. In the past, failing ad tech firms have seen rivals swoop in at cut prices, either for entire operations or certain product lines. Amobee’s acquisition of Videology followed the latter’s bankruptcy filing in May 2018.