Sunday, June 30, 2024

Redbox's Owner is Bankrupt

Redbox was once a popular option for renting movies and games. Then with the rise of streaming and digital rentals, it pretty much fell off. In 2022 the company was acquired by Chicken Soup for the Soul Entertainment. Yes, the company that made those books with motivational stories and essays that were huge some decades ago but also had a decline in business. Now, in 2024, CSSE, as I will call it for short, is out of money and filing for Chapter 11 bankruptcy.

The company hopes to secure a loan and reorganize, but it seems CSSE owes a ton of people money and cannot even make payroll for employees. CSSE is in debt to everyone from Walmart to Hollywood studios and their landlord. It sounds dire, which isn't surprising for a company in the hole--let me check my notes here--$970 million? Good God, that's a lot of moolah! I only hope Chicken Soup for the Soul Entertainment can figure something out so that at least its employees have functional insurance (they currently do not) and get their paychecks. As of now, however, this is quite a mess for the company.

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