Redbox's parent company has filed for bankruptcy.
Chicken Soup for the Soul Entertainment, Inc. has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.
According to court documents, the Connecticut company has between 1,000 and 5,000 creditors, listed assets of $414,075,844 as of March 31, and liabilities of $970,020,650 as of March 31.
Chicken Soup for the Soul Entertainment offers three flagship ad-supported video-on-demand streaming services: Redbox, Crackle and Chicken Soup for the Soul. In addition, the company operates Redbox Free Live TV, a free ad-supported streaming television service with approximately 130 channels, transactional video-on-demand services, and a network of approximately 27,000 kiosks for DVD rentals throughout the United States.
The company also produces, acquires and distributes films and TV series through its subsidiaries Screen Media and Chicken Soup for the Soul TV Group. The company also has a sales organization called Crackle Connex.
Chicken Soup for the Soul Entertainment Inc. is a subsidiary of Chicken Soup for the Soul, LLC, which publishes a book series and manufactures pet food under the brand name “Chicken Soup for the Soul.”
Chicken Soup for the Soul acquired Redbox in 2022.
The company's shares were valued at more than $42 at one point in 2021 but fell to just 12 cents by the close of trading on Monday.
Chapter 11 bankruptcy provides protection from creditors while a company or large investor continues to operate and works out a repayment plan. Both creditors and owners must agree to a restructuring plan, which ultimately must be approved by a federal bankruptcy court judge. Chicken Soup for the Soul Entertainment will continue to operate during Chapter 11 bankruptcy.
