The owner of Redbox has filed for Chapter 11 bankruptcy
What led Redbox's owner to file for Chapter 11 bankruptcy?
Chicken Soup for the Soul Entertainment, the owner of Redbox, filed for Chapter 11 bankruptcy due to massive debt of $970 million. The company had recently disclosed net losses of $636.6 million for 2023, suspended medical benefits, and missed payroll, leaving employees without paychecks for a week. The company is seeking a debtor-in-possession loan to remedy the situation.
How much debt is Chicken Soup for the Soul Entertainment in?
Chicken Soup for the Soul Entertainment is in $970 million of debt. The acquisition of Redbox in 2022 brought a significant amount of debt, and the company owes money to various retailers, studios, and streaming platforms, including Walmart, Universal, and Sony1.
How much were Chicken Soup's net losses in 2023?
Chicken Soup for the Soul Entertainment reported net losses of $636.6 million for 2023 in a SEC filing. The significant financial strain was primarily due to the acquisition of Redbox in 2022, which resulted in a substantial increase in the company's debt load4.