Home » Deep in Red-box! Parent company of DVD rental kiosks and Chicken Soup for the Soul books files for bankruptcy

Deep in Red-box! Parent company of DVD rental kiosks and Chicken Soup for the Soul books files for bankruptcy

by John Jefferson
0 comment

The parent company of Redbox DVD kiosks and Chicken Soup for the Soul books has filed for bankruptcy saying it owes more than $1bn.

Chicken Soup for the Soul Entertainment filed for Chapter 11 bankruptcy last week, according to The Wall Street Journal. The company is responsible for the book series by the same name. It also owns Redbox kiosks – which are distinctive DVD rental machines placed outside grocery stores and other businesses.

Crackle, the video-on-demand service, is also owned by the company. The company itself said it owes money to more than 500 creditors, including Walmart, Walgreens, Warner Bros. Home Entertainment and Sony.

The parent company didn’t comment on the bankruptcy filing, according to the Journal.

Lenders were unwilling to cooperate with potential refinancing leading to the filing, the report noted. Chapter 11 bankruptcy allows a company to reorganize and continue operations despite the filing.

There are more than 34,000 Redbox stations at businesses across the country, according to the newspaper.

Chicken Soup for the Soul Entertainment took on $360m in debt when it acquired Redbox in 2022.

The company behind DVD rental Redbox said it owes money to more than 500 creditors, including Walmart, Walgreens, Warner Bros. home Entertainment and Sony
The company behind DVD rental Redbox said it owes money to more than 500 creditors, including Walmart, Walgreens, Warner Bros. home Entertainment and Sony (AP)

The company hoped demand for the kiosk would rebound after the Covid-19 pandemic. However, it failed after the company didn’t have enough money to purchase rights to many films being released, the Journal noted.

Streaming services have also increased in recent years, allowing consumers to access studios and programming right from home instead of visiting a kiosk.

It’s unclear what the future holds for Redbox and the book series due to the bankruptcy.

The Journal reported that chairman William Rouhana said the company would consider selling some of its assets and restructuring current debt loans.

Chicken Soup for the Soul Entertainment saw its stock fall by another 40 percent as of midday Monday, now sitting at 11 cents a share.

The share price has fallen nearly 98.5 percent in the last five years. It was once valued at 42.49 a share in June 2021.

Read the full article here

You may also like

Leave a Comment

Our Company

True Battle is your one-stop website for the latest politics news from the US and the World, follow us now to get the news that matters to you.

Newsletter

Subscribe to our newsletter to get the latest political news, articles & new reports. Let's stay updated!

Laest News

© Copyright 2023 – All Right Reserved

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy