Redbox’s owner files for bankruptcy after repeatedly missing payments and payroll
by Janko Roettgers from The Verge - All Posts on (#6NW9Z)
A Redbox machine from 2015. Redbox's owner, Chicken Soup for the Soul Entertainment, filed for bankruptcy protection overnight. This comes at the tail end of a month in which the DVD rental company defaulted on loans, saw an order for its cars to be repossessed, and missed payroll for employees.
Chicken Soup for the Soul Entertainment informed employees of the filing late Friday, writing in an email seen by The Verge that it had filed for a debtor-in-possession loan - a way for companies that are reorganizing after filing for bankruptcy to secure additional working capital to meet payroll.
It's a pressing matter for the company, as employees have been waiting for paychecks since June 21st. The company also promised to reinstate health insurance for his employees,...