Redbox set to close as DVD market withers in streaming's shadow
Why is Redbox shutting down after 22 years?
Redbox is shutting down after 22 years due to its parent company, Chicken Soup for the Soul Entertainment, converting its Chapter 11 bankruptcy case to a Chapter 7 liquidation proceeding23. This change indicates that the company was unable to create a repayment plan for its outstanding debts and will now sell off assets to pay back creditors. As a result, all Redbox employees will be laid off and its 24,000 kiosks will close.
What led Redbox to convert from Chapter 11 to Chapter 7?
Redbox's parent company, Chicken Soup for the Soul Entertainment, was unable to come up with a repayment plan for its outstanding debts, leading to the conversion from Chapter 11 to Chapter 7 bankruptcy. This change signifies that the company will now liquidate its assets to pay back creditors, resulting in the closure of Redbox's 24,000 kiosks and layoffs of all employees.
How many employees will be laid off due to Redbox's closure?
Redbox's closure will result in the layoff of over 1,000 employees. This comes after Redbox's parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 7 bankruptcy and decided to liquidate its assets2.