University City-based Answers Corp. has filed for Chapter 11 bankruptcy.
According to documents filed Friday in U.S. Bankruptcy Court in Manhattan, plans call for the company to swap its ownership to creditors who are owed about $540 million. Under the bankruptcy plan, which already has been approved by 98 percent of Answers’ creditors, the company will lower its debt by $471 million.
In December, Answers laid off 60 employees, a bulk of whom worked in the company’s University City headquarters and its New York City office. All the employees worked for Answers’ Multiply unit, a platform formerly known as Answers.com that helps connect celebrities to their fans. The company previously laid off about 100 employees in mid-2015.
Answers Corp. rebranded Answers.com as Multiply, which accounts for about half of the company’s revenue, in September.
Read more: St. Louis Business Journal