Getty Images to undergo Chapter 11 restructuring

Getty Images has announced plans to file for Chapter 11 bankruptcy protection in the United States to restructure its significant debt. The company, which faces liabilities reported between $1.4 billion and $2.1 billion, intends to undergo a reorganization process that is expected to be completed by 2026.

As part of the restructuring agreement, the Getty family and Koch Equity Development have committed to investing up to $533 million in new capital. Upon completion of the process, these investors are expected to take 100% ownership of the company, which will result in Getty Images being delisted from the New York Stock Exchange.

The financial crisis follows a failed $3.7 billion merger with competitor Shutterstock, which was blocked due to regulatory concerns from the UK’s Competition and Markets Authority. While the rise of generative artificial intelligence is noted as a competitive pressure in the stock imagery market, analysts point to high debt loads and legal expenses as primary drivers of the current situation.

The company has stated that its daily operations will continue without interruption, and the restructuring is not expected to result in layoffs or affect payments to photographers and customers.