Scout.com: Scout has been “hit with an involuntary Chapter 11 petition in the US Bankruptcy Court”. Scout has 21 days to respond or would make the bankrutcy official. According to TheStreet.com three primary creditors are owed nearly $800,000. Scout Media President responded to TheStreet via email by saying, “We have no comment at this time other than to say Scout’s best-in-class network of publishers will continue to provide the premium content and dynamic communities that our millions of users know and love.”
SCOUT MEDIA FILES FOR BANKRUPTCY AFTER CREDITORS PETITION FOR REPAYMENT
Things have been trending downward for Scout for much of 2016. When the company’s board terminated CEO Jim Heckman in July, the product team resigning en masse. It was also revealed that contributor payments were often a week late or more and reports that Scout hadn’t paid anyone on time in “several months.” The process of replacing the product team reportedly moved slowly and multiple former publishers aired their grievances, all of which culminates in the latest development.