Gawker has been put up for auction after the website was declared bankrupt in the wake of its court loss against former WWE wrestler Hulk Hogan.

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Gawker founder Nick Denton filed for bankruptcy on Friday (10 June), months after he lost a privacy lawsuit against the wrestler – real name Terry Bollea – after a sex tape featuring Hogan and Heather Clem was published on the website.

The case brought the company to its knees with Hogan being owed $140m (£98m) after the judgement. Going into bankruptcy means it can continue operating and paying its staff.

Gawker has been forced to sell its business at a court-supervised auction and has arranged a $22m bankruptcy loan to stay open until the hammer is brought down on the company. The company listed Hogan as its largest creditor with whatever money is left at the end of the process going to Denton and other shareholders.

After the trial it emerged Hogan's legal fight was being funded by Silicon Valley billionaire and Pay-Pal co-founder Peter Thiel in what many believe was revenge against Denton after the website outed him as gay in a 2007 article.