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Home Technology

The owner of Redbox has filed for Chapter 11 bankruptcy

June 30, 2024
in Technology
The owner of Redbox has filed for Chapter 11 bankruptcy
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Cheyenne MacDonald

Chicken Soup for the Soul Entertainment, which acquired the movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy protection, Deadline reports. The company recently disclosed net losses of $636.6 million for 2023 in a SEC filing, and Deadline reported just a few days ago that it had suspended medical benefits and missed payroll, leaving employees without their paychecks for a week already. In a message to employees on Saturday, Chicken Soup for the Soul Entertainment said it had applied for a debtor-in-possession loan in an attempt to remedy the situation.

“Upon court approval, we expect payroll to be funded early in the week and funding for this upcoming week’s payroll to also be secured,” the message said, per Deadline. “We also expect to have the funds to reinstate medical benefits back to May 14, 2024 and going forward.” The $375 million deal to acquire Redbox brought with it a ton of debt, and according to The Verge, Chicken Soup for the Soul Entertainment owes money to a slew of retailers, studios, and streaming platforms — including Walmart, Universal and Sony — as well as other creditors.

Its total debts come to about $970 million. Chicken Soup for the Soul Entertainment also owns the streaming service Crackle and a few other film and TV brands, in addition to selling the long-running self-help books it’s best known for.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Engadget – https://www.engadget.com/the-owner-of-redbox-has-filed-for-chapter-11-bankruptcy-172124081.html?src=rss

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