Digital ad marketplace EMX (ENGINE Media Exchange) and its New York-based parent company, Big Village, have filed for bankruptcy.
Big Village filed a Chapter 11 petition alongside its affiliate, EMX Digital Inc. on Wednesday.
AdExchanger has learned that EMX shut down most operations and let go almost all of its employees as of Thursday, according to a source familiar with the matter who asked to remain anonymous.
A small skeleton crew remains employed at EMX, but it is unclear whether the company will continue business in some capacity as it navigates through the bankruptcy process.
EMX failed to pay its publisher partners, possibly as far back as January 2022, the source said. As of last month, 50% of publishers had cut off their relationship with EMX’s platform due to non-payment, although the marketplace was still honoring bid requests from advertisers.
According to the source, it’s unclear which entity operating under Big Village’s umbrella owned the debt that accrued as a result of publisher nonpayments.
Big Village is backed by venture capital firm Lake Capital Partners, which was responsible for the decision to file for bankruptcy. Lake Capital had been looking for a buyer but was unable to secure one.
AdExchanger reached out to Big Village for comment but did not receive a response in time for publication.
Big Village was previously known as ENGINE before its rebrand in June 2022. EMX was founded in 2018, when ENGINE acquired automated ad marketplace bRealTime and data platform Clearstream and combined them into a single entity to power its programmatic business.
Correction 2/9/23: This article originally said ad agency Trailer Park Group was part of Big Village’s bankruptcy filing. Trailer Park Group was sold to Erie Street Growth Partners and Origami Capital Partners in August 2021 and was not impacted by this filing.
