Redbox’s parent company has filed for bankruptcy.
Chicken Soup for the Soul Entertainment Inc. has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
According to court documents, the Connecticut company has between 1,000 and 5,000 creditors, $414,075,844 in assets (as of March 31) and liabilities of $970,002,065 (as of March 31).
Chicken Soup for the Soul Entertainment owns three flagship ad-supported streaming video-on-demand 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, as well as a transactional video-on-demand service and a network of approximately 27,000 DVD rental kiosks across the United States.
The company also creates, acquires and distributes films and television 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 series of books and produces pet food under the Chicken Soup for the Soul brand.
Chicken Soup for the Soul acquired Redbox in 2022.
The company’s stock was once valued at more than $42 in 2021. It had fallen to just 12 cents by the end of trading Monday.
Chapter 11 bankruptcy provides businesses or large investors with protection from creditors while they continue to operate and work out a repayment plan. Creditors and owners must agree on a reorganization plan, which must ultimately be approved by a federal bankruptcy judge. Chicken Soup for the Soul Entertainment will continue to operate during Chapter 11 bankruptcy.
