Redbox owner files for Chapter 11 bankruptcy

Chicken Soup for the Soul Entertainment, which acquired movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy protection, deadline report. The company reported a net loss of $636.6 million for 2023 in a recent SEC filing, and deadline Just days ago, it was reported that it had suspended medical benefits and deferred payroll, leaving employees without pay for a week. 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 effort to rectify the situation.

“Subject to court approval, we expect salaries to be paid early in the week and funds will be secured for the following week's salaries as well,” the message said. deadline“We also expect to have the funds to reinstate medical benefits through May 14, 2024 and beyond.” The $375 million deal to acquire Redbox brought with it massive debt, and according to the report VergeChicken Soup for the Soul Entertainment owes money to a number of retailers, studios and streaming platforms — including Walmart, Universal and Sony — as well as other creditors.

Its total debt is about $970 million. Chicken Soup for the Soul Entertainment also owns the streaming service Crackle and a handful of other film and TV brands, in addition to selling the long-running self-help books for which it is best known.

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