Chicken Soup for the Soul Entertainment, swamped by debt, declares bankruptcy
What led Chicken Soup for the Soul Entertainment to declare bankruptcy?
Chicken Soup for the Soul Entertainment declared bankruptcy due to accumulating nearly $1 billion in debt and facing financial struggles, including unpaid bills and losses over recent quarters. The company's lenders were unwilling to cooperate with refinancing, leading to the Chapter 11 bankruptcy protection filing in Delaware court.
What types of content does Chicken Soup for the Soul Entertainment produce?
Chicken Soup for the Soul Entertainment produces various types of content, including uplifting books, TV shows, movies, and online video content5. They also own DVD rental operator Redbox and run Redbox Free Live TV, a free ad-supported streaming service1. Additionally, they operate thousands of DVD rental kiosks.
Why were lenders unwilling to cooperate with refinancing efforts?
Lenders were unwilling to cooperate with refinancing efforts due to Chicken Soup for the Soul Entertainment's financial struggles and nearly $1 billion debt. The company's losses continued to pile up, and its stock price had fallen more than 90% over the last year, indicating a high risk for lenders.