Company Faces Bankruptcy and Layoffs as Employees Go Unpaid and Health Insurance Lapses

The downfall of a once-popular DVD rental business has left employees in a dire situation. Chicken Soup for the Soul Entertainment, the company that purchased Redbox in 2022, has stopped paying its employees since June 21st and let their health insurance lapse in May. With millions of dollars owed to various companies, Chicken Soup for the Soul Entertainment has now switched from Chapter 11 to Chapter 7 bankruptcy, leading to the closure of all 24,000 Redbox kiosks across the country and the layoff of all 1,000 employees.

The impact of this decision is already visible, as Redbox kiosks are shutting down one by one. A visit to the nearest Redbox location in Kalamazoo confirmed that it is no longer active, signaling the end of an era for the once-thriving DVD rental business.

As employees anxiously await their paychecks and health insurance reinstatement, the future remains uncertain for Chicken Soup for the Soul Entertainment. The company’s financial struggles serve as a cautionary tale of the ever-changing landscape of the entertainment industry and the challenges faced by businesses trying to adapt to new technologies and consumer preferences.