Ad-tech firm EMX files for bankruptcy

US-based ad-tech firm ENGINE Media Exchange (EMX) and its owner Big Village filed for bankruptcy on Wednesday, as reported by AdExchanger.

The parent company and its affiliate have filed a Chapter 11 petition, but they haven’t shared any word yet.

According to a source familiar with the matter who spoke to AdExchanger, EMX has ceased most of its operations and laid off the majority of its staff. While the firm still has some employees, whether they would continue operations at any capacity while going through the bankruptcy process remains unknown for now.

According to the source, the firm was in debt to its publisher partners, possibly since the beginning of last year. As they couldn’t receive their payments, half of its publishers had already cut their ties with EMX as of last month, while the firm continued to accept advertisers’ bid requests.

Citing two sources familiar with the matter, AdWeek reported that the firm owed two publishers around $750,000, but there are probably more publishers that couldn’t get their money, they added.