Redbox DVD kiosk-rental business shuts down after parent company files for bankruptcy
Why did Redbox convert its bankruptcy to Chapter 7?
Redbox converted its bankruptcy to Chapter 7 liquidation because its parent company, Chicken Soup for the Soul Entertainment, was unable to continue paying employees and bills. The company had nearly $1 billion in debt and was struggling financially, leading to the decision to liquidate its assets and shut down Redbox's operations.
How many Redbox kiosks were operational in the US?
There were about 34,000 Redbox kiosks operational across the US, primarily located at grocery and drug stores.
What led to Chicken Soup for the Soul Entertainment's debt?
Chicken Soup for the Soul Entertainment's debt was primarily caused by the acquisition of Redbox in 2022, which resulted in the company taking on about $325 million in debt. The decline in DVD rentals and the impact of the pandemic on the entertainment industry also contributed to the company's financial struggles.