On the internet, popularity does not always equal revenue.
In some cases, well-loved content simply does not meet the needs of advertisers, and in others, the cost of creating the content simply outpaces the revenue it produces.
Part of the challenge is that even readers who don’t use an ad blocker tune out most ads.
“The average clickthrough rate is a measly 0.05 percent, so publishers covered their sites with increasingly obtrusive ads,” Wired reported.
In addition, most ad dollars do not go to content or journalism websites.
“The global advertising market surpassed $1 trillio in 2025, while contributing less and less to the financing of journalism, according to The Forum on Information and Democracy’s report.
The data identify other beneficiaries of this fast-growing market.
“Chief among them are the leading digital companies Meta, Alphabet (the parent company of Google), and Amazon. These three alone accounted for more than 55% of the global advertising market, excluding China, in 2025 — a share that could exceed 60% by 2030.”
That has made the content business very challenging, and it was too much for Food52, a popular recipe and cooking community website, to overcome. The company filed for Chapter 11 bankruptcy in December and has now received permission from a bankruptcy court judge to ask its creditor to approve its liquidation plan.
Food52 will be broken up
“A Delaware bankruptcy judge approved motions Friday allowing e-commerce group Food52 to send its Chapter 11 liquidation plan out for a creditor vote, overruling an objection by the U.S. Trustee’s Office,” Law 360 reported.
The company entered Chapter 11 with a plan to sell off its assets.
America’s Test Kitchen (ATK) entered into an agreement in December for the acquisition of certain assets of Food52, Inc., according to a press release.
“Food52, Inc. has filed a voluntary petition for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware to facilitate an auction sale of substantially all of its assets, with ATK serving as the proposed stalking horse bidder,” the companies shared.
In the end, assuming creditors approve, the brand’s assets will be split among three companies.
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“Food52 itself went to stalking horse bidder America’s Test Kitchen, which acquired the company for $9.9 million, plus the assumption of some liabilities. Oregon-based whole home brand Schoolhouse was purchased by Troy-CSL, a division of the Hudson Valley Lighting Group, for $2.2 million. Dansk, the heritage tabletop brand, was sold to design licensing agency Form Portfolios for $250,000,” Business of Home reported.
That was an increase on America’s Test Kitchen’s original $6.5 million stalking horse bid for Food52, according to data reported by Bloomberg.
Food52 Chapter 11 bankruptcy key facts
- Food52, Inc. filed for Chapter 11 bankruptcy protection on Dec. 29, 2025, in the U.S. Bankruptcy Court for the District of Delaware, according to PacerMonitor filings.
- The filing was triggered after its lender pulled funding and swept cash from its accounts, leaving the company without liquidity, Bloomberg reported.
- Food52 entered Chapter 11 to pursue a sale of its assets, with America’s Test Kitchen serving as the stalking-horse bidder at about $6.5 million, according to a press release.
- The company received debtor-in-possession (DIP) financing to continue operating during the bankruptcy process, added the press release.
- Food52 reported more than $17 million in debt and over $1 million in assets at the time of filing, according to the New York Post.
- The company had faced years of financial struggles tied to digital media monetization challenges and expansion efforts, reported Adweek.
- Food52 had undergone layoffs and restructuring efforts prior to the filing as it sought a sale, according to TheStreet.
- In February 2026, Food52’s assets were split and sold in a bankruptcy auction, with the core business going to America’s Test Kitchen for about $10.3 million, according to Adweek.
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What’s next for Food52?
Creditors must still approve the deal. In addition, there are backup bids, should the original winners be unable to close their transactions.
“In the event that the winning bids don’t go through, Food52’s backup bidder is Static Media; Schoolhouse’s is CSC Generation. The total value of the auction is almost double the original stalking horse bid of $6.5 million, but it is a fraction of the $300 million valuation the company received in 2021 following two rounds of investment by private equity firm The Chernin Group,” Business of Home reported.
Food52 has remained in operation through this entire process.
“From the beginning, Food52 aspired to build a place where great food, thoughtful design and a deeply engaged community could live together,” said CEO Erika Ayers Badan. “We are excited at the prospect of bringing this into the future with the help of America’s Test Kitchen, one of the most trusted brands in culinary media.”
Related: Coffee company files for Chapter 7 bankruptcy, faces liquidation
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