Digital ad marketplace EMX (ENGINE Media Exchange) and its New York-based parent company Big Village have filed for Chapter 11 bankruptcy. The bankruptcy filing is a significant setback for the companies, which had hoped to establish themselves as major players in the digital advertising industry. According to a source familiar with the matter, who wished to remain anonymous, EMX has ceased most of its operations and nearly all employees have been laid off, with the exception of a small team. It is unclear whether the company will continue operations in any form while it goes through bankruptcy proceedings. The news is the latest in a series of setbacks for the company, which has reportedly failed to pay its publishing partners, with as many as 50% of publishers cutting ties with its platform last month for non-payment. It is uncertain which of the Big Village companies owned the debt that resulted…