Redbox Movie Rental Company Files for Bankruptcy Protection
Redbox Movie Rental Company Files for Bankruptcy Protection
A once-popular movie rental company, Redbox, owned by Chicken Soup for the Soul Entertainment, has officially filed for bankruptcy protection after facing significant financial issues in recent months. The news comes as a shock to many customers who have relied on the iconic red vending machines for their entertainment needs.
According to reports from the website Verge, Chicken Soup for the Soul Entertainment informed its employees last week about the bankruptcy filing and expressed hopes of securing a “debtor-in-possession loan” to reorganize the company and secure additional working capital to meet payroll obligations.
It was revealed that many employees of Redbox have not received paychecks since June 21st, and all employees lost their health insurance after it lapsed in May. The company also owes money to various retailers, Hollywood studios, landlords, and the company from which it rents its car fleet.
Chicken Soup for the Soul Entertainment acquired Redbox in 2022 and has since been embroiled in multiple lawsuits over unpaid bills from various companies. Court documents show that the company has a staggering $970 million in debt.
This news has left many wondering about the future of the beloved movie rental service and the impact it will have on the entertainment industry as a whole. Stay tuned for further updates on this developing story.
