Redbox's owner files for bankruptcy after repeatedly missing payments and payroll
Why did Chicken Soup for the Soul Entertainment file for bankruptcy?
Chicken Soup for the Soul Entertainment filed for bankruptcy due to its inability to keep up with financial obligations after acquiring Redbox in 2022, which resulted in a heavy debt load of $970 million. The company defaulted on loans, missed payroll for employees, and faced multiple lawsuits over unpaid bills.
What consequences did missing payroll have on employees' health insurance?
Missing payroll led to the lapse of employees' health insurance in May. The company promised to reinstate the health insurance as they filed for bankruptcy protection and sought a debtor-in-possession loan to cover additional working capital for payroll and other expenses.
What led to Redbox's financial troubles?
Redbox's financial troubles stem from a combination of factors, including the decline of physical media rentals, the burden of acquisition debt from its parent company Chicken Soup for the Soul Entertainment, industry-wide disruptions, and apparent mismanagement. The company has faced lawsuits, missed payments, and defaulted on its debt, leading to potential bankruptcy and restructuring.