RIP Redbox: DVD Kiosk-Rental Business Is Shutting Down With Parent’s Bankruptcy Liquidation
Why is Redbox shutting down its operations?
Redbox is shutting down its operations because its parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy and then converted it to a Chapter 7 liquidation proceeding4. This led to the decision to liquidate the company's assets, including its 24,000 DVD rental kiosks and streaming services, resulting in the layoff of all 1,000 employees.
What led to Chicken Soup for the Soul's Chapter 7 filing?
Chicken Soup for the Soul Entertainment's Chapter 7 filing was primarily due to its inability to meet the terms outlined by primary creditors in a debt forbearance agreement, despite several extensions5. The company's financial struggles were also attributed to the decline in Redbox's business and the impact of the COVID-19 pandemic on theatrical releases.
How many employees are affected by the Redbox closure?
The Redbox closure affects all 1,000-plus employees of Chicken Soup for the Soul Entertainment, as they are now unemployed due to the company's conversion of its Chapter 11 bankruptcy case to a Chapter 7 liquidation proceeding2.