IRS Claims Vice Media Owes Nearly $41 Million in Back Taxes for Refinery29

Todd Spangler
·1 min read
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The Internal Revenue Service filed a claim in Vice Media Group’s bankruptcy case saying the company’s Refinery29 division owes the U.S. government about $40.9 million in back taxes, interest and penalties.

The total tax bill for Refinery29, a digital media outlet that focuses on fashion, beauty and wellness topics, runs from the first quarter of 2020 through June 2023, per the IRS’s claim filed on Aug. 3, according to the website established for Vice’s bankruptcy case, which is being overseen by the U.S. Bankruptcy Court for the Southern District of New York.

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A rep for Vice Media Group did not respond to a request for comment on the IRS claim. Vice Media completed the acquisition of Refinery29, for a reported $400 million price tag, in November 2019.

On July 31, Vice Media announced the closing of its deal to be acquired by a consortium of former lenders, comprising funds managed by affiliates of Fortress Investment Group, Soros Fund Management and Monroe Capital. The deal values Vice at $350 million, compared with its peak valuation of $5.7 billion six years ago.

In addition to taxes the IRS says it is owed for Refinery29, the agency has filed claims seeking to recover an additional $1.24 million in taxes and penalties from Vice Media, its affiliates and/or subsidiaries, according to filings.

Vice Media’s bankruptcy filing in May disclosed that the company had $834 million in debt and $350 million in assets.

Former CEO Nancy Dubuc exited the company in February, and Vice is currently led by co-CEOs Bruce Dixon and Hozefa Lokhandwala.

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