Redbox Owner Chicken Soup For the Soul Files For Chapter 11 Bankruptcy Protection

Chicken Soup for the Soul Entertainment, the parent of DVD rental operator Redbox, has filed for Chapter 11 bankruptcy protection after months of financial struggles and piling unpaid bills. The Associated Press reports: Chicken Soup for the Soul has accumulated nearly $1 billion in debt, the Chapter 11 filing submitted Friday in Delaware bankruptcy court shows, after reporting loss after loss over recent quarters. The filing also discloses that Chicken Soup for the Soul owes millions to over 500 creditors -- which range from big names in the entertainment world like Sony Pictures and Warner Bros, to major retailers like Walgreens and Walmart. As of March of this year, Friday's filing shows, Chicken Soup for the Soul had about $414 million in assets and $970 million in debts. Shares for the public company have fallen more than 90% over the last year. "Redbox, founded in 2002, is best known for red-colored, self-serve machines that sit outside of pharmacies or groceries stores to rent or sell DVDs," notes the report. It was acquired by Chicken Soup for the Soul in 2022. There are currently about 27,000 Redbox kiosks across the U.S. -- down from 36,000 at the Redbox acquisition was finalized in August 2022.

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