NEW YORK: Gawker has filed for Chapter 11 bankruptcy protection, but its editor said Friday that the company’s flagship website will function normally throughout the process.
"We are continuing to function, we are still publishing, we are still going to be doing stories," Gawker editor-in-chief Alex Pareene told PRWeek. "This doesn’t change any of that."
He was unable to comment further.
The outlet’s parent company, Gawker Media Group, filed for bankruptcy protection on Friday in order to protect its assets from seizure by Hulk Hogan, according to Politico. The filing notes that Gawker is planning to begin "the process of marketing and selling assets of the company."
Gawker Media has hired investment bank Houlihan Lokey to advise it on a possible sale. PC Magazine owner Ziff Davis is reportedly eyeing an opening bid of $100 million in an auction for the site. Other bids are expected.
In March, former professional wrestler Hogan sued Gawker for publishing a sex tape. He won $115 million and was later awarded an additional $25 million in damages.
At the time, newly minted editor-in-chief Pareene told PRWeek, "We're still going to do what we do. In fact, our new deputy editor, Kelly Stout, formerly of The New Yorker, [joined a week after Hogan won the suit]."
Gawker is appealing the ruling. However, the judge overseeing the case has declined to issue a stay pending the outlet’s appeal. Because that required the company to put up a $50 million bond, Gawker declared bankruptcy to continue operating and paying staffers.
Silicon Valley billionaire Peter Thiel acknowledged last month that he has been funding lawsuits against Gawker.